Future of financial reporting and IFRS for SMEs - Mazars - United Kingdom
Future of financial reporting and IFRS for SMEs
The future of financial reporting and accounting in the UK and the Republic of Ireland will be fundamentally changing under the proposals laid out by the Accounting Standards Board (ASB).
The Mazars Financial Reporting team are able to assist you with understanding what the new proposals are and how they may impact your business. We have also produced various technical publications and material to help explain the basics relating to the future of financial reporting and the associated IFRS for SMEs.
Steven Brice, the Financial Reporting Advisory Partner, is a member of the SME Implementation Group (SMEIG), set up by the IASB to support the international adoption of the IFRS for SMEs and monitor its implementation. He is very pleased to have this opportunity to work with the other 20 members of the Group and the IASB on such a momentous and valuable development within financial reporting throughout the world.
For further details refer to the IASB project page.
Future of Financial Reporting in the UK and the Republic of Ireland
UK and Irish entities will be required to adopt a new financial reporting framework under the proposals set out by the ASB to replace existing UK GAAP with an international-based financial reporting standard. The new international-based regime and standard (to be called FRS 102) is based upon the IFRS for SMEs, however it has been significantly adapted for use in the UK and ROI.
The ASB revised their original proposals to take account of concerns raised by UK and Irish businesses, investors, regulators and advisory firms (for further details on Mazars’ responses refer to our publications). This now means that the requirement for entities to apply EU-adopted IFRS will not extend beyond those that are currently required to do so, and there is more alignment between the revised proposals and existing UK GAAP, compared to the original proposals.
The new financial reporting framework is anticipated to be finalised by the end of 2012, with implementation expected to be required by 2015.
IFRS for Small and Medium-sized Entities (IFRS for SMEs)
The IFRS for SMEs was published by the International Accounting Standards Board in 2009 in order to provide a simplified and self-contained standard to meet the needs and capabilities of international smaller and medium-sized entities that do not operate in capital markets.
Compared with full IFRS, and some national GAAPs, the IFRS for SMEs is less complex and has therefore been welcomed in a number of countries throughout the world, including South Africa and the USA, as a replacement or permitted alternative for use by certain companies. The European Financial Reporting Advisory Group (EFRAG) has not as yet endorsed the standard for use in Europe.
National Contact
Related publications
IFRS for SMEs Technical Bulletin
The countdown commences... IFRS for SMEs, the new accounting Standard, that is likely to affect the future of UK GAAP.
Response to the Future of Financial Reporting
The proposals laid out by the ASB regarding the Future of Financial Reporting in the UK and Ireland are undoubtedly significant and will impact on all UK and Irish businesses. Mazars have responded to the ASB's Consultation Paper (February 2010) and Exposure Drafts (April 2011) in the attached comment letters, which set out general comments as well as responses to the specific questions.
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- Copyright 2012 - Mazars - United Kingdom
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- Copyright 2012 - Mazars - United Kingdom
