Under UK GAAP practice smaller companies are entitled (but not
required) to draw up their accounts (apart from consolidated
accounts) under the provisions of the FRS for Smaller Entities
rather than under the individual FRS, including FRS7, FRS10 and
FRS11.
The objective of the FRS for Smaller Entities is to provide
an accounting framework for smaller reporting entities which
provides adequate information about their financial position,
performance and financial adaptability while recognising that the
accounting requirements may not need to be so detailed as for
larger entities.
The Revenue Accountants’ web-site carries further
general information on the FRS for Smaller Entities, and also an
article explaining the differences in the treatment of goodwill and
intangible assets under the individual standards on the one hand
and the FRS for Smaller Entities on the other.
