The ACCA has published a short research paper, "The new UK GAAP: how would the numbers look?", into IFRS for SMEs and how it will change the landscape for SME financial reporting. Currently small businesses mostly report under UK GAAP. However, as UK GAAP moves towards IFRS as a result of the FRC's consultation earlier this year into the future of UK GAAP, and the FRSSE seems to be dragged by the inevitable gravitational pull of IFRS for SMEs, it's a worthwhile question to ask. It focuses on reported profits but also considers how that might flow through into taxable profits.

The report identifies over 50 differences between UK GAAP and IFRS for SMEs, any of which could be significant to an individual company. It points out the main differences that are likely to be the most important in practice.

The report can be downloaded here.

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Filed under: Academic research, Accounting, Institutes with tags acca, ifrs, small businesses, uk gaap