Council members meeting today (Wednesday) voted unanimously to delegate negotiation and approval of the standards to a working group, but only after a heated debate.
Some members called for lengthy delays to adoption and were warned that to do so beyond 8 January could risk ‘Armageddon’ by putting the institute in breach of its letters of understanding with the FRC.
The vote was originally scheduled for October, but council members chose to postpone until today over fears that the standards could be damaging to small businesses.
Eric Anstee, cheif executive of the institute, said: ‘While we are fully supportive of the proposals in relation to listed and public interest companies, we still have concerns over their application in relation to smaller entities, concerns which we know are shared by the wider SME community.’
‘We have a constructive dialogue on these issues with the APB who are working through revisions to the small entity requirements in order to ameliorate the adverse effects on SME audits.’
The working group will comprise council members and office holders, possibly including president Paul Druckman.
However, the institute has limited room for manoeuvre because new Companies Act will require the accountancy bodies to apply the standards in the New Year.
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