ICAS says timescale for change to UK reporting regime is unrealistic
4 Feb 10
Plans to adopt a three-tiered structure for financial reporting in the UK, based on a concept of public accountability, are sensible, but the proposed timescale in which to do so is unrealistic. That’s the view of the Institute of Chartered Accountants of Scotland in its submission to the Accounting Standards Board Consultation ‘The Future of UK GAAP’
Under the ASB proposals, businesses adopting either EU adopted International Financial Reporting Standards (IFRS) or the IFRS for SMEs will need to prepare a full set of comparative figures and narrative disclosures for the financial year prior to the year of adoption. Under the current timetable this would mean the need to restate financial statements for 2011 – when the final decision on these proposals is unlikely to be made before December 2010.
Commenting on the plans, executive director, technical policy, David Wood, said: “ICAS proposes that the date of transition should be 1 January, at least two years from the date the ASB publishes its final requirements.
“It is possible that implementation of the proposals for public benefit entities such as charities might need to be delayed, for example by changes to legislation or revisions to sectoral guidance, but this should not impede the transition for profit-making entities.”