RegulationAccounting StandardsProfession pans plan to postpone IFRS

Profession pans plan to postpone IFRS

HMRC plans to delay implementation of IFRS for SMEs to allow it time to introduce iXBRL electronic filing

The taxman’s suggestion to delay new SME accounting standards to help
implement new tax IT changes has won little support from the profession.
The introduction of iXBRL, the electronic tagging tax language, has been called
a “car crash” and accountants have reacted angrily at suggestions that IFRS for
SMEs takes a back seat to HMRC’s plans.

“iXBRL is yet another government IT slow motion car crash. The replacement of
UK GAAP is an FRC slow motion car crash. Both of which are scheduled to collide
and make a nightmare of a pile up,” said Chris Try on Accountancy Age’s website.

D M Marler, another web commentator, said: “Knowing how complex bespoke
systems can be to implement successfully, wouldn’t it be better for HMRC to
delay the compulsory deadlines for iXBRL?”

HMRC has admitted introducing both at the same time could be burdensome,
how­ever, it is unwilling to back down on its introduction date.

A spokesman at HMRC told Accountancy Age: “The ASB (Accounting Standards
Board) is aware of HMRC’s timeline for compulsory online filing and will be
considering the timetable for its own proposals in the light of the responses
received to its consultation. We are working closely together to ensure the ASB
takes into account the implications for customers potentially affected.”

Ian Mackintosh, chairman of ASB, said: “We will definitely give consideration
to all these suggestions and the reasons for them. We are not locked into a date
for implementation.”

The date clash was brought to light by the commission’s advisory accountant
with HMRC, Matt Blake, in a letter to the ASB, which suggested pushing the UK
GAAP change date back a year to avoid coinciding with HMRC’s iXBRL filing
deadline.

Further reading:

Taxman
urges delay of UK GAAP replacement

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