Ian Mackintosh on IFRS for SMEs and UK GAAP changes
Ahead of his lecture at next week’s Institute of Certified Bookkeepers Annual Conference, ASB chairman Ian Mackintosh lays out the organisation’s vision for a ‘more rational’ financial reporting system.
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IASB should keep its nose out of SME accounts
Looking at the IASB ED its clear that IASB is way out of touch with the needs of SMEs.
Why should a plumber draw up a cashflow statement?
IASB says banks require cashflow statements. NONESENSE - never seen cashflow statements in the past 20 years EXCEPT in business plans and projections.
If IASB is so far out of touch with reality in this respect the whole concept of IASB sticking its nose into very small business accounts is total nonesense.
So SMEs who don't wish to have their accounts expanded to include nonsensical pages should shop around to find accountants who, like me, will rebel against IASB. Could be an interesting shake up of the UK accountancy preparation market.
I expect that there are plenty of existing "sheep" mainstream accountants who'll blindly / obediently accept the IASB proposals. These accountants need to lose business to those accountants who have the interests of SMEs at heart. I regularly see limited company accounts being prepared with information that is neither legally required, requested by the directors or in fact useful - a good example of many mainstream accountants obeying so-called "good" practice rather than more importantly cutting costs for their clients and producing concise meaningful accounts.
In summary SMEs should be exempt from IASB edicts, announcements and similar nonesense.