The current proposals will require all entities (except those small enough to use the FRSSE) to report in accordance with either EU-adopted International Financial Reporting Standards (IFRS) or the new Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 or FRSUKI) – a UK version of the International Accounting Standard Board’s (IASB’s) IFRS for Small and Medium-sized Entities (IFRS for SMEs). The move would see the end of current UK GAAP. A reduced disclosures option will be available for all ‘qualifying entities’.

The impact of conversion to a revised reporting framework at an entity level stretches far beyond accounting to affect every key business decision, not just how it is reported, for example impacting cash tax and distributable reserves. Access to up-to-date knowledge, practical insights and timely advice for initial conversion and ongoing reporting is essential. As IFRS or FRSUKI become the financial reporting language in the UK, consistent interpretation and application become ever more vital.

At Ernst & Young, we recognise the need to bring multi-disciplinary skills to address the range of issues our clients face in dealing with conversion to a new GAAP in a practical way. We combine accounting, financial reporting, taxation, industry sector and process expertise to address your needs, your stakeholder expectations and your regulatory obligations.

The replacement of current UK GAAP means that organisations need to start planning now for some of the important decisions they will need to make in advance of the proposed mandatory date of adoption for financial periods beginning on or after 1 January 2015, although many companies are seeing the benefits of moving away from UK GAAP earlier.

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