News Article - 24 May 2012
Category:

The recently proposed international financial reporting standard (IFRS) for small and medium-sized enterprises (SMEs) is unsuitable for the preparation of accounts for small companies, the Institute of Chartered Accountants in Scotland (ICAS) has said.

In response to the proposal made by the Accounting Standards Board (ASB), ICAS has claimed that the new standard should not be used by small businesses, which should instead continue to work under the guidance of the financial reporting standard for smaller entities (FRSSE).

The institute proposed that a three-tier structure of financial reporting would be the best way forward.

As part of the structure, listed firms would use full IFRS, unlisted businesses would operate under IFRS for SMEs while small companies would continue to work with FRSSE.

ICAS director of accounting and auditing, James Barbour, said: "The draft IFRS for SMEs does not provide a suitable basis for the preparation of accounts for small companies due to the complexity and associated costs.

"A three-tier financial reporting structure would be in the best interests of UK business for the time being," he added.

The ASB recently announced that it will have two new members as of September 1st.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »