The CFDG has called on the Accounting Standards Board to maintain the FRSSE for a guaranteed period and to make preparations for a reduced disclosure framework should it be phased out.

The FRSSE (Financial Reporting Standards for Smaller Entities) is likely to be phased out but at this stage the are no indications of a timescale for this or what it would be replaced by.

The umbrella body was responding to the Accounting Standards Board consultation on the Future of Financial Reporting in the UK and Ireland.

CFDG policy officer Katherine Smithson said it will take “a lot more discussion” to come up with the appropriate time period for the FRSSE to be retained and to decide on its replacement.

However, she added: “It is generally accepted that its days are numbered, but it is right that it remains for the time-being and we would like more clarity down the line so people can prepare.”

To use the FRSSE a charity needs to meet two or more of the following criteria in the financial year: a gross income of £6.5m or less; a balance sheet total is £3,260,000 or less; and an average number of employees of 50 or less.

Possible changes to FRSME

CFDG’s other recommendations include:

• Leaving the door open for possible changes to the FRSME (Financial Reporting Standard for Mid-Sized Entities) to be made in light of issues identified through consultation on the FRSPBE (Financial Reporting Standard for Public Benefit Entities);
• Ensuring that sector-specific SORPs are in place in good time before new standards are put in place to allow for adequate preparation and to mitigate some of the costs associated with implementing new requirements; 
• Allowing revaluation of plant, property and equipment and the capitalisation of borrowing costs; 
• Changing the term 'public accountability' to 'public market accountability'; 
• Altering sections on government grants, investments and acquisition accounting.