Accounting changes for smaller entities under spotlight
Jenny Carter of the Financial Reporting Council talks to James Barbour of ICAS about proposed changes to accounting standards for smaller entities.
James Barbour, ICAS Director of Technical Policy, recently interviewed Jenny Carter, Director of UK Accounting Standards at the Financial Reporting Council, about the FRC's proposals to amend UK and Irish accounting standards which will mainly impact on smaller entities.
The proposals will impact on 1.5m of the smallest companies ("micro-entities") in the UK by providing them with the opportunity to simplify their reporting requirements.
There will also be changes for the 1.5m other companies that fall within the "small" company size threshold, including improving accounting for financial instruments and supporting the implementation of legislative changes. Listed groups will benefit from greater flexibility and greater efficiency
in reporting formats.
The proposals are intended to be effective for accounting periods beginning on or after 1 January, 2016, with early application permitted for accounting periods beginning on or after 1 January, 2015. The plans have been open for comment until 30 April 2015 and the final standards and amendments are expected to be issued in July 2015.