Laura Farrow, Senior Audit Manager, MHA Broomfield Alexander
On 31 July 2013, the FRC issued an updated version of the Financial Reporting Standard for Smaller Entities, to be known as the FRSSE (effective January 2015).
FRS 100 Application of Financial Reporting Requirements (issued in November 2012 as part for the suit of standards that form the new UK GAAP) contained a small number of amendments to the FRSSE. As a convenience to those preparing small company accounts, the FRC has issued this updated version of the FRSSE, to maintain it as a one-stop-shop. The updated FRSSE contains no new amendments to those previously issued.
The changes bring the FRSSE treatment of goodwill and intangible fixed assets and related party transaction disclosures into line with FRS102. The updated FRSSE also says that for new transactions not dealt with in the FRSSE and for which an entity has no existing policy, it should have regard to FRS102 to establish current practice, rather than SSAPs, FRSs and UITF Abstracts.