ACCA seeks less accounting standards

News Article - 21 May 2012
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The Association of Chartered Certified Accountants (ACCA) has said that it would like the number of main systems accounting standards used in the UK reduced to two.

International Financial Reporting Standards (IFRS), full UK standards and the FRSSE are the three systems currently used.

According to Accountancy Magazine, the association is now urging the Accounting Standards Board (ASB) to have just two systems: the IFRS and a new set of UK standards currently being drafted.

The International Accounting Standards Board (IASB) is drafting new standards for SMEs.

Comments from the body come in response to an ASB consultation on the future application of reporting requirements for UK companies.

"We recognise that the ASB cannot go all the way in this direction until the shape and nature of the IASB's SME standard is finalised and judged appropriate," said Richard Martin, the ACCA's head of financial reporting.

"We do think that a strategy can be set now on the assumption that they will be appropriate."

The ACCA also stated its belief that IFRS should not be forced onto not-for-profit organisations such as charities, Accountancy Magazine added.

"For these entities the relevant SORPs (statements of recommended practice) should continue to be the key means of setting financial reporting and these would be backed up by, and remain consistent with, the UK standard based on the IASB's SME standard," it reported Mr Martin as saying.

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