The Institute of Chartered Accountants for England and Wales (ICAEW) has called for a prompt implementation of the revised proposal on the future of financial reporting in the UK in order to remove an outdated system.
The ICAEW said in its response to the UK Accounting Standards Board (ASB) draft, The Future of Financial Reporting in the UK and ROI, that the proposed changes to UK GAAP are “broadly fit for purpose”.
“Existing UK GAAP is out-dated and rather incoherent, and a replacement is long overdue. Many people, ICAEW included, had some serious concerns about the last set of proposals. But the ASB has conducted a robust further consultation and responded to these concerns,” ICAEW’s Financial Reporting Faculty head Nigel Sleigh-Johnson said.
The ASB had to reissue its proposal at the beginning of the year following wide-spread opposition by stakeholders to the first draft.
Sleigh-Johnson said the ASB should be looking to resolve Financial Reporting Standards for Smaller Entities (FRSSE) simultaneously.
“We recognise that the standard setter is hamstrung by developments in Brussels – the reform of the EU Accounting Directive – but leaving the current FRSSE in place reduces the potential benefits of creating a more comprehensive, coherent and internationally-aligned UK accounting regime,” Nigel Sleigh-Johnson said.
The revised ASB’s proposal was open for comment until 30 April and the standard setter says it will issue a new UK financial reporting framework by the end of the year.