ACCA commends IASB project
The International Accounting Standards Board (IASB) new standard for
small and medium sized enterprises (SMEs) will have a significant impact
on millions of companies around the world, says ACCA (the Association of
Chartered Certified Accountants). Despite concerns by many that the new
simplified standard, which still runs to more than 200 pages would be
too complex for small businesses to use, ACCA's own research shows
little concern in this area.
Head of Financial Reporting at ACCA Richard Martin said: We are
delighted that the IASB has completed its most important project after
five years work. It comes at a critical time, because it will mean that
countries will be able to apply IFRS to companies of all sizes and not
need to operate two systems of financial reporting, with one for large
listed companies and another for smaller or unlisted privately owned
companies. ACCA has always supported IFRS as a global accounting
language for listed companies now this has been opened up for smaller
businesses too.
"The use of international standards across the board should add
credibility to the financial statements of unlisted companies, at a time
when potential users of accounts want to be able to rely on the figures
they see," he said.
ACCA President Brendan Murtagh, who is a partner in an accounting
practice, said: "In my practice we imagine this will be warmly accepted
as best practice by our clients very quickly. A set of standards which
is more easily understood by smaller businesses, their potential
investors, customers and suppliers can only help organisations to
survive in these tough trading conditions and to potentially thrive when
the current situation eases". |