SMEs call for convergence halt

SMEs call for convergence halt

Business body warns of standards threat to small companies

Furious representatives of the small business community have backed calls to
halt convergence between UK and international accounting standards.

The Federation of Small Businesses is angry that new standards designed for
listed companies are being spread to private businesses even though the
International Accounting Standards Board is still developing a specific set of
standards for SMEs.

The FSB moved to support calls from the ICAEW to suspend convergence until
the new SME standards are finalised. ‘Most small companies have issues that are
of no interest to anyone outside the company,’ said Neil Hamper, chairman of the
taxation committee at the FSB. ‘So why do we have to have these top-down
standards imposed on us? Some of them can have devastating effects on our
business.’

‘It is a waste of time and money and is not good for the economy,’ said Andy
Mowlah, policy analyst at the Forum of Private Business. ‘Businesses need to
know the rules and regulations will not change.’

Earlier this week the institute argued that the continuing shift in UK GAAP
towards IFRS is putting increasing burdens and uncertainties on unlisted
companies. It suggested that there should be a ‘significant pause’ in the
convergence programme until the outcome of the international project on SME
standards.

‘If the ASB was to proceed with the current convergence programme, companies
could face the grim prospect of switching from UK GAAP to full IFRS to
simplified IFRS in short succession,’ said ICAEW chief executive Eric Anstee.

‘This would be an unacceptable outcome, involving substantial costs and
uncertainties, without delivering benefit to the users of the accounts.’

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource