EXTINCTION FOR THE FRSSE

摘要

The new EU accounting directive uses the principle of maximum harmonisation for its small company requirements. This means that member states are not allowed to require any more disclosures than set out in the directive. As the directive must be implemented by 20 July 2015 and take effect from 1 January 2016, both the Department for Business, Innovation and Skills (BIS) and the Financial Reporting Council (FRC) have been busy working on consultation documents. As signposted in the FRC's announcements, its consultation proposes that small companies (though not micro entities) will move to FRS 102, Financial Reporting Standard applicable in the UK and Ireland, at the start of 2016. As many will already know, FRS 102 is the new UK GAAP standard based on the International Financial Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs) and as such the proposal seems broadly sensible.