Financial reporting standards: the ASB proposes to replace existing UK accounting standards with a single financial reporting standard

On 30 January 2012, the Accounting Standards Board (‘ASB’) published for consultation revised proposals for the future of financial reporting standards in the UK and Republic of Ireland. Its principal recommendation is that all current UK accounting standards should be replaced by a single financial reporting standard based on the International Financial Reporting Standards for small and medium-sized enterprises (which would lead to a reduction in the volume of accounting standards). The ASB has also published the alternative view of one member of the ASB who disagrees with the proposed approach.

The ASB invites comments by 30 April 2012 and proposes that the changes will be effective for accounting periods beginning on or after 1 January 2015.

Revised Financial Reporting Exposure Draft: The Future of Financial Reporting: Part One; Explanation available at:

http://www.frc.org.uk/images/uploaded/documents/Part%20 1%20Web%20Optimized%20Feb%209th%202012.pdf

Revised Financial Reporting Exposure Drafts 46, 47 and 48: The Future of Financial Reporting: Part Two: The Drafts Standards available at:

http://frc.org.uk/images/uploaded/documents/Part%202%20 Web%20Optimized1.pdf

Revised Financial Reporting Exposure: The Future of Financial Reporting: Part Three: Development of the Financial Reporting Exposure Drafts and Impact Assessment available at:

http://frc.org.uk/images/uploaded/documents/Part%203%20 Web%20Optimized1.pdf

Alternative view available at: Revised FRED: The Future of Financial Reporting – Alternative View:

http://frc.org.uk/images/uploaded/documents/Alternative%20 View%203rd%20Proof.pdf