The ASB is part of the Financial Reporting Council, an independent regulator funded by a levy on listed companies,[3] and it replaced the Accounting Standards Committee (ASC), which was disbanded in 1990 following a number of criticisms of its work.
To the extent that the ASC's pronouncements, known as Statements of Standard Accounting Practice (SSAPs), have not been replaced by FRS, they remain in force.
[5] The principal legislation governing reporting in the UK is laid down in the Companies Act 2006, which incorporates the requirements of European law.
[6] Recently issued UK FRSs have, in any case replicated the wording of corresponding IFRS, reducing the differences between the two sets of standards significantly.
The Financial Reporting Standard for Smaller Entities will continue to be available for those that qualify to use it and will remain fundamentally unaltered for the time being.
The main purpose is to make reporting requirements proportionate to the size of the entity, and it also includes changes to disclosure, measurement, and recognition.