Grant Thornton UK said the U.K. Accounting StandardBoard's proposal to replace U.K. GAAP with International Financial ReportingStandards for Small and Medium Enterprises is a good one, but objects to thetransition deadline of Jan. 1, 2012, as insufficient to give most businessestime to prepare.
"The impact of a complete change to the accountingframework will extend beyond the preparation of the financial statements,"said Brian Shearer, the firm's national director of financial reporting."Many businesses remain unconcerned but management will need time to considerhow IFRS for SMEs affects such elements of their business as tax bills, bankcovenants and bonus arrangements in addition to the one-off cost ofconversion."
The firm said the immediate benefits to adopting a set ofinternational accounting standards include cross-border comparability andcomprehension of financial reports. Short-term disadvantages, however, includethe costs associated with systems changes and training.
