News

The future of financial reporting in the UK and Republic of Ireland

Monday, 30^th January, 2012  The Accounting Standards Board has today published three financial reporting exposure drafts (FREDs) setting out revised proposals for the future of financial reporting in the UK and Republic of Ireland. These proposals are intended to apply for accounting periods beginning on or after 1 January, 2015. Comments on these proposals are requested by 30 April 2012.

The revised proposals recommend:

• replacing existing standards with a single FRS which is based on the IFRS for SMEs;
• allowing certain entities to apply a reduced disclosure framework; and
• retaining the Financial Reporting Standard for Smaller Entities (‘FRSSE’).

These FREDs contain significant changes to the previous proposals, including:

1. elimination of the concept of ‘public accountability’ and the consequent requirement to apply EU-adopted IFRS;
2. incorporating accounting treatment permitted under current accounting standards which are not included in the IFRS for SMEs; and
3. including guidance for public benefit entities within the single FRS.

The following FREDs have been issued:

• FRED 46 ‘Application of Financial Reporting Requirements’ (draft FRS 100)
• FRED 47 ‘Reduced Disclosure Framework’ (draft FRS 101)
• FRED 48 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (draft FRS 102)

Pursuant to its statutory function of co-operating in the development of accounting standards, IAASA has observer status at ASB meetings.

Further information about the proposals can be found here.

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Authority publishes observations on selected year end financial reporting issues

Friday, 6^th January, 2012: IAASA has today published observations on selected year end financial reporting issues affecting entities whose securities are listed on a regulated market and whose home Member State is Ireland.  The current economic backdrop results in ongoing risk and uncertainty in the recognition, measurement and classification of revenues, expenses, assets and liabilities in financial statements in respect of financial years ending on or after 31 December, 2011 as well as to associated risks in the context of presentation and disclosure. The importance of the role played by Boards and Audit Committees in considering and approving issuers’ periodic financial reports, as prepared on the directors’ behalf by management, is all the more important in such challenging circumstances.  Set against this backdrop the observations document has been developed with a view to providing information and assistance to issuers’ Boards and Audit Committees.

• The document can be accessed here.

IAASA has in previous years issued similar documents and these can be accessed below:

• Observations on selected financial reporting issues issuers’ financial years ending on or after 31 December, 2010
• Observations on selected financial reporting issues issuers’ financial years ending on or after 31 December, 2009
• Observations on selected financial reporting issues issuers’ financial years ending on or after 31 December, 2008

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