UK GAAP is currently undergoing the most significant overhaul in a generation with the introduction of FRS 102 becoming mandatory for accounting periods commencing on or after 1 January 2015, explains Steve Collings.
In addition, there are some consequential amendments to the FRSSE (effective April 2008) which form the FRSSE (effective January 2015) and also the EU Accounting Directive which was introduced at the end of 2013 and significantly revises the small companies regime in terms of a vast amount of reduced disclosures.
So with all this change, what does the future hold for the beloved FRSSE?
It was always the intention of the Financial Reporting Council (FRC) to revisit the FRSSE once FRS 102 had taken effect to ensure that there are no significant variations between the FRSSE and the new UK GAAP. At present, FRSSE (effective January 2015) has only experienced limited amendments including the reduction of the presumed economic life of goodwill and intangible assets from 20 years to five years where management are unable to reliably assess the useful economic life of such assets; inclusion of revised terminology and removal of references to FRSs/SSAPs/UITFs and FRSSE (effective January 2015) now includes a specific requirement for entities to annually assess whether there are any indicators of asset impairment.
When the new EU Accounting Directive...
About Steven Collings
Steve Collings, FMAAT FCCA is the audit and technical partner at Leavitt Walmsley Associates Ltd where Steve trained and qualified.