FRC consultation on implementing the Accounting Directive
The Financial Reporting Council is proposing changes to its accounting standards, and one new accounting standard, as part of its implementation of the Accounting Directive. Its proposals are set out in three financial reporting exposure drafts:
- FRED 58 sets out a new standard for very small companies, known as "micro-entities"
- FRED 59 sets out amendments to FRS 102, the financial reporting standard applicable in the UK and Republic of Ireland. These include a new section 1A on small entities. Small entities will apply the presentation and measurement requirements of FRS 102 but can apply different presentation and disclosure requirements
- FRED 60 sets out minor consequential amendments to FRS 100 Application of Financial Reporting Requirements and FRS 101 Reduced Disclosure Framework.
Once these proposals are adopted, the Financial Reporting Standard for Smaller Entities or "FRSSE" will be withdrawn.
The deadline for comments is 30 April 2015. Final standards are expected to be issued in July 2015 and will apply for accounting periods beginning on or after 1 January 2016.
FREDs 58, 59 and 60 and an overview of the FRC's proposals can be found here.