International accountancy firm Grant Thronton has warned small and medium-sized entities (SMEs) to prepare for changes to the financial reporting system in the UK.
A number of leading lights in the accountancy world recently attended a seminar held by the firm, which aimed to clarify the new International Financial Reporting System for SMEs system, which was put forward by the Accounting Standards Board, reports the Sheffield Telegraph.
Commenting on the new regulations, Craig Burton, assurance director at Grant Thornton in Sheffield, told the news provider: "The IFRS for SMEs will be the biggest change in the UK accounting system for 30 years. It will impact on over 400 companies in the Sheffield area alone, and could cost the region up to £5m in management time and professionals fees."
"It's far more than just a change to the presentation of financial statements; it will have implications for loan covenants, bonus schemes, dividend payments and corporation tax bills," he added.
Last year, KPMG's Andrew Vials claimed every effort should be made to ensure convergence in global accountancy regulations.
