By Daniel Hunter
The announcement by the Financial Reporting Council of the imminent publication of FRS102, a comprehensive and unifying replacement for the current UK GAAP, marks a real and optimistic change for UK financial reporting.
“UK GAAP had become a patchwork of old UK standards, guidance and other reporting standards," Veronica Poole, UK national head of accounting at Deloitte, commented.
"Now UK companies will have a coherent framework which will enable them to prepare accounts in a common-sense fashion. The new standard is a single, short and comprehensive standard based on international standards which will bring about a much-desired simplification overall. The UK is leading the way on promoting good reporting which is proportionate to the size and type of entity.
“The standard has been through a long and painstaking process of consultation and decision-making which has seen the reinstatement of many popular UK accounting options. As it is based on international standards, it will get UK accountants talking the same international language.”
The new standard will affect nearly all UK companies to some degree and businesses need to start thinking about the choices available to them. The standard is mandatory for periods beginning on or after 1 January 2015 and that means that some actions will be required well ahead of time with a transition date which could be as early at 1 January 2014.
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