Charities consider future without UK GAAP

CHARITIES are concerned at the prospect of losing FRSSE, the accounting standard for the smallest entities based on UK GAAP.

Popular for its simplicity, the Charity Finance Directors’ Group has called for the standards to be maintained for a guaranteed period and said that a reduced disclosure framework is essential if they are to be phased out.

Policy officer Katherine Smithson said: “It is generally accepted that [FRSSE’s] days are numbered, but it is right that it remains for the time being and we would like more clarity down the line so people can prepare.”

The Accounting Standards Board recently asked for feedback on planned moves towards an International Financial Reporting Standards-based standard for SMEs, known as the FRSME. Many believe the next stage will be to move the smallest entities to an IFRS-based system, ensuring all groups are reporting according to the same set of principles.

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Fiona Westwood of Smith and Williamson.