Amendments To The FRSSE

The Financial Reporting Standard for Smaller Entities (FRSSE) is designed to act as a one-stop shop for smaller companies (i.e. small companies as defined in companies legislation and other entities which meet the same criteria).

The January 2005 version, for the first time, incorporated the relevant small company law requirements, as well as accounting standards, making it a comprehensive source of financial reporting requirements. Small companies, in most cases, do not need to refer separately to other accounting standards or Companies Act provisions.

The recent pace of change in UK company reporting, however, means that the Accounting Standards Board (ASB) is already proposing a new version of the FRSSE, despite the most recent version only having come into effect in January of this year. The proposed new standard is likely to be effective for accounting periods beginning on or after 1 January 2007.