UK Financial Reporting Council (FRC) proposals released Tuesday are designed to simplify accounting for the UK’s smallest companies, known as micro-entities.
The proposals reflect new legislation introduced by the Department for Business, Innovation & Skills in November that provides for less complex financial statements with fewer disclosure notes.
Roger Marshall, an FRC board member who chairs the FRC’s Accounting Council, said the proposed amendments are intended to allow micro-entities that are taking advantage of the new legal provisions to continue applying the accounting principles of the UK Financial Reporting Standard for Smaller Entities.
“This will ease the burden considerably on the UK’s 1.56 million smallest companies, many of which offer unique, specialist services and include the types of businesses the government sees as critical to the UK’s future economic growth,” he said in a news release.
Comments on the proposals can be made at ukfrs@frc.org.uk and will be accepted through February 12th.
—Ken Tysiac (ktysiac@aicpa.org) is a CGMA Magazine senior editor.