The Financial Reporting Council (FRC) has issued amendments to UK accounting standards, ushering in a new financial reporting regime for small and micro entities. The changes will come into effect for accounting periods beginning on or after 1 January 2016. Early adoption is generally permitted.
Under the new framework, most small entities that currently apply the Financial Reporting Standard for Smaller Entities (FRSSE) will switch to FRS 102 The Financial Reporting Standard for the UK and Republic of Ireland. The FRSSE will be withdrawn. All entities (excluding IFRS reporters and those that opt-in to the micros regime) will now apply a single up-to-date, internationally-aligned standard.
The Financial Reporting Faculty has published a new FAQ document covering the recent changes to UK company law. Including the option for small companies to file an abbreviated version of their full accounts with Company House for period beginning on or after the 1 January 2016.