New APB bulletin aims to guide auditors

This announcement comes as the European accounting community prepares for a changeover to international accounting standards, with the English ICA publishing The Convergence Handbook, a document intended to highlighted the differences between UK and international accounting standards and stimulate UK and Irish debate on the disparity before the changeover takes place.

The purpose of Bulletin 2000/3 is to provide guidance to auditors reporting on financial statements for periods beginning on or after 24 December 2000.

The bulletin applies to financial statements that fall within the scope of, but contain a departure from, a SORP, or on any financial statements for which the relevant disclosure requirements of FRS 18 have been applied before that date.

Commenting on the bulletin, APB chairman Ian Plaistowe, said: ‘Bulletin 2000/3 provides helpful guidance for auditors in relation to an aspect of FRS 18. Although the effective date is some time away, the APB considered it appropriate to coordinate issuing guidance for auditors with the ASB’s issuance of FRS 18.’

The FRS 18 ‘Accounting Policies’, includes disclosure requirements in respect of compliance with, or departures from, SORPs for periods beginning on or after 24 December 2001.

Also included in FRS 18 is a requirement that, where financial statements fall within the scope of, but depart from, a SORP, there should be disclosure of the reasons why the treatment adopted is judged more appropriate to the entity’s particular circumstances.


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