In July 2009, the United Kindom Accounting Standards Board ('ASB') issued 'Policy Proposal: The Future of UK GAAP'. This followed the publication of the International Financial Reporting Standard for Small and Medium-sized Entities ('IFRS for SMEs') by the International Accounting Standards Board ('IASB').
The ASB proposes to converge UK and Irish GAAP in the future to the fullest extent possible with IFRS, issued by the International Accounting Standards Board ('IASB'). If the proposal is implemented, a three tier system of financial reporting would exist such that, depending on certain specified criteria, companies would apply one of the following;
- IFRS (as endorsed by the European Union) - Publicly Accountable entities;
- IFRS for SMEs - non-Publicly Accountable entities; or
- FRSSE (small entities).
The press release from the ASB can be accessed, and the document containing the ASB proposals downloaded, from the ASB website by clicking here.