The UK’s Accounting Standards Board has made a tentative decision to defer the effective date of the Financial Reporting Standard for Medium-Sized Entities (the FRSME) until 1 January 2015, i.e. 12 months later than previously expected. The FRSME could now therefore apply for years ended 31 December 2015 for the first time (with comparatives). This means that, for such a company, the transition date would be 1 January 2014, the first day of the comparative period.The transition to the FRSME, which is based on an international standard, will see the end of current UK GAAP for all companies except those qualifying as small companies and able to apply the UK’s standard for small entities (the FRSSE). A further exposure draft of the FRSME is expected soon and the delay in implementation will allow a suitable consultation period before the requirements are finalised.
Although this delay will give companies more time to prepare for the transition, once the requirements are finalised, companies will want to assess its impact at an early stage so they can ensure they have the correct systems in place and adopt the best policies on implementation. Johnston Carmichael will be available to help you in this regard.
We will keep you updated as developments arise.
If you would like further information on this, please contact your usual Johnston Carmichael contact or David McBain, Head of Audit on 01343 547492. david.mcbain@jcca.co.uk.
