FRSME response ‘double’ last consultation

ALMOST 300 responses have now been received on the financial reporting for SMEs (FRSME) consultation led by the Accounting Standards Board.

Chairman Roger Marshall said the number has crept up to 290, almost double the 150 received in the last ASB consultation.

“We are very happy with the response, although it is true that a strong return from housing associations and credit unions has probably boosted the number,” he said.

Stakeholders were asked their views on International Financial Reporting Standards for SMEs, and a number of issues were seen as controversial. For housing associations, the proposed removal of options such as revaluation and development cost capital caused particular concern, as they could seriously affect the balance sheets of these asset-rich organisations.

Credit unions have argued they should not be classed as publicly accountable as this would force them to report under full IFRS, a more onerous task than using the proposed FRSME standards.

The board has met to discuss the preliminary findings and a full report is expected later this year.

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Fiona Westwood of Smith and Williamson.