The UK government and
the Financial Reporting Council (FRC) are considering reducing
financial reporting burdens for small businesses.

The discussion paper
published by the department for Business, Innovation and Skills and
the regulator proposes easing corporate reporting procedures for
micro-entities with annual turnover of less than £440,000
($724,152), net assets under £220,000 and with less the 10

These small businesses
would be required to file a simplified trading statement, in place
of the current profit and loss account, a simplified statement of
position and a simplified annual return.

The paper also proposes
developing an integrated software package to help small businesses
prepare financial information and allow managers to gain a better
understanding of the trends in their businesses’

“Reducing unnecessary
regulatory burdens on the smallest businesses can give them the
freedom to innovate and grow. A new deregulation from EU rules
targeted at micro businesses means we now have a chance to deliver
these benefits,” Minister for employment relations, consumer and
postal affairs Edward Davey said.

The discussion paper is
open for comment until 30 October 2011.