Financial Reporting Standard for Small Entities FRSSE
The Financial Reporting Standard for Small Entities (FRSSE) is very important for people who run their own small companies. It permits a much reduced level of public disclosure for companies which are small, and in particular, allows such companies to dispense with a costly audit each year.
Previously it was necessary for any company with a turnover of at least £1 million per annum to have an audit carried out each year. Such audits must be carried out by firms who are authorised to do so and, not surprisingly, are relatively expensive.
In recent years however, the reporting regime for small (and medium-sized) companies has become considerably more favourable as a result of recognising two important facts:
- Many small companies cannot afford an annual audit.
- A formal audit is unnecessary when the only parties who have an interest in the result of the audit are the individuals who run the company.
To qualify as a small company and therefore fall within FRSSE a company must meet two of the three following criteria:
- Average number of employees is less than 50 in the year in question.
- Turnover is not more than £6.5 million.
- The balance sheet total is not more than £3.26 million.
In effect FRSSE means that company proprietors can deal with all accounting, reporting and taxation obligations if they have the skill to do so, without recourse to expensive external advisers.
This article was written by:--Martinc 18:51, 30 June 2014 (BST)
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.
70+ experts appointed to public sector fire safety framework
The Fire Safety (FS2) Framework from LHC Procurement.
Project and programme management codes of practice
CIOB publications for built environment professionals.
The ECA Industry Awards 2024 now open !
Recognising the best in the electrotechnical industry.
Sustainable development concepts decade by decade.
The regenerative structural engineer
A call for design that will repair the natural world.
Buildings that mimic the restorative aspects found in nature.
CIAT publishes Principal Designer Competency Framework
For those considering applying for registration as a PD.
BSRIA Building Reg's guidance: The second staircase
An overview focusing on aspects which most affect the building services industry.
Design codes and pattern books
Harmonious proportions and golden sections.
Introducing or next Guest Editor Arun Baybars
Practising architect and design panel review member.
Quick summary by size, shape, test, material, use or bonding..