ASB Announces Amendments in FRS 2010 to Support Convergence
The latest Financial Reporting Standard (FRS), 2010 has been designed and published by the Accounting Standards Board (ASB) to update UK standards so that it aligns and converge with the International Financial Reporting Standards (IFRS).
The International Financial Reporting Standards (IFRS) are standards, interpretations and framework, which are principle-based and are embraced by the International Accounting Standards Board (IASB).IFRS has incorporated many standards verbatim and are cited as International Accounting Standards (IAS).
Accounting Standards Board (ASB) supervises the requirement of financial reporting for its UK companies in order to maintain and improve the standards. This also aids in influencing the quality of international standards. ASB collaborates with accounting standard formulators of other countries and the IASB.
Subsequent to the annual review of FRS by Accounting Standards Board and publication of a Financial Reporting Exposure Draft (FRED) in June 2010, the ASB made improvements in the Financial Reporting Standards, 2010.
The amendment made in the FRS is minimal while giving the current proposal on the “Future of UK Financial Reporting Standards”. The idea is to assist groups in making reliable financial statements. This should reflect in the consolidated as well as subsidiary financial statements prepared in agreement with IFRS and FRS respectively.
In October 2010, the Accounting Standards Board (ASB) had published its proposal for the financial reporting in future in the United Kingdom and republic of Ireland. It included a 3-tier reporting framework. It also simplified UK standards taking cue from the International Financial Reporting Standards (IFRS) for SMEs