Southwest-based Milsted Langdon has welcomed news that the Financial Reporting Council (FRC) has issued a number of changes with the aim of simplifying the reporting of company accounts.
FRSSE is no more and according to the FRC, the changes – which are effective from 1 January 2016 – are largely in response to the implementation of the new EU Accounting Directive. They include:
- A new standard – FRS 105; the Financial Reporting Standard applicable to the Micro-entities Regime
- A new section – 1A Small Entities of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland
The FRC has also published an Overview of the Financial Reporting Framework, which describes the framework applicable for accounting periods beginning on or after 1 January 2016 and includes key differences between the FRSSE and the new requirements set out in FRS 105 and section 1A of FRS 102.
Gary Salter, General Practice Partner at Milsted Langdon, said: “These changes to accounting standards will have a positive impact upon small businesses. I believe that they will effectively cut red tape for small companies. They also respond to the new legal framework for disclosure in small company reporting, providing guidance for applying it and improving transparency relating to financial instruments.
“In addition, they play a role in improving the cost-effective reduced disclosure framework for listed groups by permitting International Financial Reporting Standards-based presentation requirements in subsidiaries’ financial statements,” Gary added.
The FRC added that it expects to issue revised editions of FRS 100, Application of Financial Reporting Requirements, FRS 101, Reduced Disclosure Framework, and FRS 102, in September.