UK: audit and accounting - reforms for small companies

In a speech delivered late last week, the Secretary of State for the Department for Business, Innovation and Skills - the Rt. Hon. Dr Vince Cable - announced the Government's intention to change the law regarding the audit requirements for small companies: see here. To quote from the speech:

... the UK gains a real advantage from upholding high standards in audit and accounting. But small company rules are stricter in the UK than in almost every else in the developed world. We will change the law to simplify small company audit rules, saving UK companies up to tens of millions in unnecessary audit fees. And we will reduce the costs for subsidiaries of larger companies. Small companies should also benefit from less complex financial reporting requirements; so we welcome the Accounting Standards Board consultation on the reporting requirements for 35,000 medium sized companies".