Baker Tilly welcomes revised proposals for the Future of UK GAAP

Baker Tilly, a leading accountancy and business services firm, welcomes the revised proposals for the Future of Financial Reporting Standards in the UK and ROI.

Danielle Stewart, partner at Baker Tilly comments:
“We are delighted that the ASB has chosen to introduce into the new UK FRS accounting treatments which are currently permitted under UK GAAP, but were not available in the original proposals. These include options to revalue land and buildings, capitalise borrowing costs and carry forward certain development expenses. We are also happy to see the introduction of the reduced disclosure framework for subsidiaries and look forward to reviewing the proposals in detail.”

Stewart continues:
“We understand the pragmatic approach the ASB is taking by removing the tier system and not bringing more companies into full IFRS. In the current economic climate, caution is required in relation to introducing heavier regulatory requirements in the absence of a manifest need. However, given the importance of public accountability, the UK may want to consider this option again when the economy improves.”

The Accounting Standards Board published the revised proposals on 30 January following feedback to its previous exposure drafts.