A new report from
Ernst & Young has revealed that 66% of UK businesses surveyed were in favour of a two-tier accounting system that adhered to
international reporting standards (IFRS).
The implementation of the two-tiered IFRS is intended to replace the current UK guidelines of Generally Accepted Accounting Principles (GAAP) . Only 6% of businesses surveyed opposed this move and wanted to stick with GAAP reporting.
This ties in with the
proposed new reporting standards for small to medium-sized enterprises (SMEs) by the Accounting Standards Body, which are due to be implemented on 1st July 2013. Financial Reporting Standards for
SMEs (FRSME) will be a diluted version of the international guidelines (IFRS).
Of those surveyed, a third confirmed that they will be adopting the full IFRS, a quarter favoured FRSME, while the remaining businesses were undecided.
Compulsory non-UK GAAP accounts are likely to take effect from 2014.
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