PracticeAuditTaxman urges delay of UK GAAP replacement

Taxman urges delay of UK GAAP replacement

Replacement of UK GAAP will clash with iXBRL introduction

Ian Mackintosh, ASB

HM Revenue Customs (HMRC) wants to delay the replacement of UK GAAP – the

accounting system for non-listed companies.

The taxman has called for a delay to avoid a clash with the
introduction of iXBRL – a new electronic, tagged, tax language.

The introduction of a new accounting code could clash with the rollout of a
new computer filing system, leaving accountants snowed under and struggling, tax
authorities have warned.

Both changes represent a dramatic change in how accountants do their job.

UK GAAP will be abandoned for financial years beginning after 1 January 2012,
which if mandatory from that date, would involve many companies planning for the
change in late 2011 – the same time they are coming to terms with filing under
iXBRL, according to proposals being considered by the Accounting Standards
Board.

In its submission, HMRC said it wants change date, for the replacement of UK
GAAP, delayed.

“We suggest that it would be helpful to companies if the ‘change’ date was,
say, a year later so that preparations for the first mandatory iXBRL filing and
the change to the future UK GAAP did not coincide,” said Matt Blake, the
commissioners’ advisory accountant with HMRC.

Senior sources within the ASB say there is already serious consideration
being given to delaying the replacement of UK GAAP.

When asked about the issue, Ian Mackintosh, chairman of the Accounting
Standards Board said he was mindful of the concerns and would discuss the issue
once all submissions were read.

“We have heard many arguments during our decision about extending the
period,” he said.

ICAS
also said today that the timetable was unrealistic, and its implementation
should be at least two years from the date the ASB publishes its final
requirements.

“It is possible that implementation of the proposals for public benefit
entities such as charities might need to be delayed, for example by changes to
legislation or revisions to sectoral guidance, but this should not impede the
transition for profit-making entities.,” said David Wood, executive director,
technical policy at ICAS.

Further reading:
ASB
sounds death knell for UK GAAP

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