FRSSE faces waning popularity

FINANCIAL REPORTING STANDARDS for Smaller Entities (FRSSE) are losing popularity among stakeholders, the Accounting Standards Board has revealed.

Responses to the ASB’s consultation on International Financial Reporting Standards for SMEs (FRSME) revealed a deepening lack of enthusiasm for the old system, according to chairman Roger Marshall.

The UK GAAP-based FRSSE will be increasingly out of sync with financial reporting for larger businesses if the move to FRSME goes ahead, with all companies except the smallest working from an IFRS-based system.

Experts have recently come out in favour of swapping FRSSE for a pared-down version of the international accounting standards, with this latest revelation indicating wider support for the move.

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Fiona Westwood of Smith and Williamson.