Many companies in the UK choose to apply the Financial Reporting Standard for Smaller Entities (FRSSE) in preparing their financial statements, explains Steve Collings.
Financial reporting is about to undergo the biggest change it has seen for several years with the introduction of a new set of financial reporting standards (FRSs 100, 101, 102 and 103) and a new financial reporting regime brings with it some new practices that accountants must get to grips with. This article looks at how the FRSSE will be affected with the new regime and considers some key points that will be of interest to practitioners.
The FRSSE was first introduced in 1997 and since its introduction has seen it updated five times. Companies are currently using the FRSSE (effective April 2008) when preparing their financial statements, however with effect for accounting periods commencing on or after 1 January 2015, there will be a new version of the FRSSE (effective January 2015). Early adoption of FRSSE is permissible, although it is likely that the majority of companies will not adopt the standard earlier than its effective from date.
The FRSSE is based on current UK GAAP and is a much-loved standard by practitioners because it offers a simplistic financial reporting framework for smaller companies, is very easy to navigate and is very straightforward to apply. The good news is...
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- Status of the FRSSE
- Main body of the FRSSE
- Changes to part C Definitions