New reporting standards for small to medium-sized enterprises (SMEs) are provisionally set to be implemented on 1st July 2013, giving companies at least 18 months to prepare for them.
Financial Reporting Standard for SMEs (FRSME) will balance out accounting standards across the board, ensuring that the system is fairer going forward. Small and medium-sized organisations will have to change the way they report their financial results, under the new proposals from the
Accounting Standards Board (ASB).
Speaking at an
ICAS event in Edinburgh, Chairman of the
IFRS Foundation (International Financial Reporting Standards) Sir David Tweedie said that the “vintage years” of UK Generally Accepted Accounting Principles (
GAAP) were over, heralding a new generation of IFRS.
The new standards would cut reporting from 2,000 pages to 400 pages, reducing costs and improving consistency in the long term.
Due to the potential cost and complexity of implementing the new standards, there have been suggestions that the ASB will push the rollout back a year, to mid-2014.
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