The Accounting Standards Board is seeking opinion on proposed changes to accounting standards for companies in the UK and Ireland.
The ASB has proposed a three-tier approach where;
1) listed companies apply the standard IFRS
2) most other companies adopt the new IFRS version for smaller companies
3) small companies will continue to use the financial reporting standard for smaller entities.
Some initial reactions have highlighted the similarities between the IFRS for SMEs and IAS19. It has also been suggested that the proposal will mean that many companies currently accounting for pensions under FRS17, from 2012, could use IAS19.
For UK companies a move from FRS17 to IFRS for smaller entities will result in a change to how surpluses can be recognised on the balance sheet although I can’t see this being much of an issue in the current environment!!
Following the publication of the IFRS standard for SMEs in July, the ASB have now opened a consultation process and will be accepting responses until 1st February 2010.