E&Y: Speak now to keep reduced disclosure option

ERNST & YOUNG has called for stakeholder participation as the Accounting Standards Board met to debate public accountability and Tier 1 reporting.

Following the ASB’s consultation on the future of UK GAAP, a number of financial institutions raised strong objections at being classified as Tier 1 publically accountable bodies, forcing them comply with full International Financial Reporting Standards.

These included credit unions and insurance brokers. ASB chairman Roger Marshall (pictured) said their concerns are being examined and consultation continues.

Andrew Davies, Ernst & Young UK&I lead partner of Financial Accounting Advisory Services, said: “Large and listed groups in the UK view the option to adopt IFRS with reduced disclosures as fundamental to their support of the proposed framework and to the future improvement of their own financial reporting processes.”

The ASB is also considering its proposed effective adoption date – currently set at 1 July 2013 – with a view to delaying it by six months. This change and others led E&Y to call for a re-exposure of the proposals and more stakeholder consultation.

The firm “strongly encouraged” interested parties to participate in the debate, especially with regards to the IFRS reduced disclosure option, saying: “The ASB is likely to conclude on this at their July meeting, so anyone wishing to ensure it is not withdrawn should speak out now.”

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Fiona Westwood of Smith and Williamson.