Standard setters await EU before launching FRSSE consultation

UK STANDARD SETTERS are awaiting fresh direction from the EU before reviewing accounting standards for the smallest entities.

Stakeholders have called on the Accounting Standards Board to consult on the UK-GAAP based FRSSE, used by micro-companies, as soon as possible.

Chairman Roger Marshall (pictured) said: “We are waiting to see what happens with the EU. Small entities might become exempt from current financial reporting requirements and this could seriously impact on the number of businesses using FRSSE.”

The proposed change could see around 5.4 million micro-entities relieved of part of their accounting burdens. It would apply to those that meet two of three criteria: balance sheet total under €500,000 (£435,000); net turnover under €1m; and an average of 10 employees during the financial year.

Marshall said the ASB will see how many companies remain in the FRSSE-using bracket after the announcement, which is expected in June.

The ASB’s recent consultation on standards for SMEs garnered 285 responses; a board meeting on Thursday will “take a look at their shape and themes before outlining a project of work”.

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Fiona Westwood of Smith and Williamson.