The Accounting Standards Board (ASB) today published an updated version of the Financial Reporting Standard for Smaller Entities (FRSSE).
The amended standards include a major simplification in terms of FRS 20 'Share-based payment' where the ASB is requiring a disclosure-only approach for equity-settled arrangements.
This change will naturally benefit small companies offering Employee Share Ownership schemes. Fiona Downes, Head of Employee Share Ownership of ifs ProShare, a not for profit organisation that supports ESO, said,
"ifs ProShare welcomes the revised standards announced today. The previous standard relating to share based payments did not produce any real benefits in terms of improved reporting whilst they did produce a real burden for many companies. This change will remove unduly costly and complex requirements for small companies which in turn is likely to help ensure the maintenance and development of employee share schemes among smaller companies."
The new FRSSE is effective for accounting periods commencing on or after 1 January 2007 and reflects the latest accounting standards and company law requirements. The new standards can be downloaded at: http://www.frc.org.uk/asb/technical/frsse.cfm
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