There are too many accounting framework around IFRS, IFRS for SMEs, FRSSE, FRS 102 and others, all creating a confusing mess.
I have listed below a simply the applicable frameworks:
|Company type||Accounting framework|
|Micro company ie. Turnover below £632,000 per annum1||FRS 105|
|Small Companies ie. Turnover below £10.20 million per annum1||Section 1A Small Entities of FRS 102|
|All others||FRS 102|
Where an entity prepares its financial statements in accordance with an accounting framework , a statement of compliance needs to be included in the notes.
- Other criteria also apply like number of employees and balance sheet total.
- Visit FRC website and search for financial reporting framework.