The QCA Financial Reporting Committee recently submitted its response to the Accounting Standards Board’s (ASB) policy proposal on ‘The Future of UK GAAP’.
The ASB was seeking comments on its proposal on how it was planning to phase out UK GAAP and introduce a three-tiered system based on full IFRS (for publicly accountable entities), IFRS for SMEs (for non-publicly accountable entities) and the FRSSE (for small, private companies as at present) standards.
The QCA wrote in its response that it believes that smaller fully listed companies and companies quoted on AIM and PLUS should be able to use IFRS for SMEs unamended rather than full IFRS at present. The one-size-fits-all approach to financial reporting for EU listed companies is not appropriate given the differences in size and market capitalisation between the global companies and smaller quoted companies. To read the response in full, please visit: http://www.quotedcompaniesalliance.co.uk/submissions/2010/QCAResponse_ASBFutureofUKGAAP_Feb10.pdf
In formulating its response, the Committee met with David Tyrrall, Department of Business, Innovation and Skills (BIS), to discuss the ASB’s and BIS’s progress with the consultation and the various issues under consideration. It also has discussed the use of IFRS for SMEs with a number of other market participants, including the International Accounting Standards Board (IASB).
The ASB reported on 16 February 2010 that it had received over 150 responses to the consultation and all had divergent views on how the ASB should proceed with moving UK GAAP towards an international framework. The ASB plans to host an event later in the year to share its analysis of the responses and how things may progress, with an intention to publishing an exposure draft after this further public consultation.
The QCA Financial Reporting Committee will be continuing its campaign on the use of the IFRS for SMEs throughout the year and are keen to hear views of smaller quoted company directors on this issue. Please email Kate Jalbert with your opinions.