UK: the future of UK generally accepted accounting principles

The Financial Times newspaper reports that the Accounting Standards Board will meet later this week to finalise plans for a discussion paper proposing the adoption of the International Accounting Standards Board's IFRS for SMEs. This discussion paper is likely to be published later this month according to the ASB's Inside Track 59 newsletter. The report in the Financial Times states: 

Sweeping accounting changes could be forced on small companies and even sizeable subsidiaries of larger ones under proposals to be discussed this week. The UK Accounting Standards Board (ASB) meets on Wednesday to put finishing touches to plans that could see Britain drop the generally accepted accounting principles, the rules followed by non-listed companies, in favour of an international standard designed for smaller companies. Under Europe-wide changes introduced in 2005, listed UK companies shifted from local rules to international financial reporting standards. But private companies and subsidiaries of listed groups have until now generally continued to follow UK Gaap. Last week, the International Accounting Standards Board released its new standard for small and medium-sized enterprises. It is not expected to be adopted into European law like other IASB rules, but countries will be free to follow it if they want. The ASB is expected to propose the UK makes the change and it will publish a paper for consultation this month. Providing the plans win backing, UK Gaap could all but disappear in 2012 or 2013".