The Accounting Standards Board (ASB) has re-exposed revised proposals for the future of financial reporting in the UK and Republic of Ireland.
The following exposure drafts were issued:
- FRED 46 ‘Application of Financial Reporting Requirements’
- FRED 47 ‘Reduced Disclosure Framework’
- FRED 48 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’
The re-exposed future of UK GAAP has come about as a result of feedback to previously issued FREDs 43 to 45 and this feedback resulted in significant changes to previous proposals.
The comment period is open until 30 April 2012 and you are well-advised to submit your feedback so that the ASB can act accordingly. The proposals are expected to come into effect for accounting periods beginning on or after 1 January 2015.
As with the previous exposure drafts, FREDs 46 to 48 recommend a full replacement of all current FRSs/SSAPs and Task Force Abstracts as well as introduce a reduced disclosure framework for qualifying entities. The FREDs also propose to retain the FRSSE but recommend a further consultation on how to update the FRSSE following the European Commission proposals for the future of financial reporting for small and micro companies.
The proposals will affect all companies that are required to prepare financial statements that give a true and fair view, including those which are not corporate entities.