Financial Reporting zone

Financial reporting briefs: April 2008

The Accounting Standards Board (ASB) is to issue an updated version of the Financial Reporting Standard for Smaller Entities (FRSSE), reflecting changes in company law arising from the Companies Act 2006. No changes are being made to the requirements that are based upon Generally Accepted Accounting Practice, the ASB says.

While the new FRSSE won’t feature many changes, those it will are significant ones. They include a 20 per cent increase in the thresholds for qualifying as a smaller company; a requirement to report separately political and charitable donations; and an increase in the threshold for reporting these donations to £2,000.

The updated FRSSE will apply for accounting periods beginning on or after 6 April 2008, the date from which the accounting and reporting regime for smaller companies in the 2006 Act becomes effective. Early adoption is not permitted so smaller companies should continue to use the current FRSSE (effective January 2007) for earlier accounting periods.

“The use of the FRSSE is widespread amongst smaller entities, hence it is important that it is kept up to date,” said Ian Mackintosh, ASB chairman.

The ASB intends to publish the new standard before the end of May.

Previous financial reporting briefs:

March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
Septmeber 2007
August 2007
July 2007