The transition to IFRS for listed companies was a difficult, time-consuming and expensive period for many companies and their FDs. So the concern will be is this also going to be the case for private companies? Should entrepreneurs and their FDs be worried?
The intention at the moment is that small companies will be able to continue with the UK GAAP FRSSE. In addition, a number of IFRS requirements have already been implemented into UK GAAP because since FRS20 on share-based payments UK GAAP has implemented IFRS standards without change.
It is also clear that the IFRS requirements on most medium sized companies will not be onerous particularly those that are stand alone companies and not entering into complex joint ventures or acquiring companies. The main change is likely to be presentation issues in terms of the look of the financial statements.
I am therefore looking forward to seeing how this will be interpreted by the ASB - anything that can make the process simple, smooth without a cost burden on SMEs will be very welcome.
Christine Corner, Partner, Grant Thornton
Find out more on our IFRS for SMEs site