Who can use the Financial Reporting Standard for Smaller Entities

The UK Financial Reporting Standards for Smaller Entities (FRSSE) sets out which entities are eligible to use the standard. Its use is restricted to small companies or small groups, as defined by the Companies Act 2006, which are not ‘ineligible’ and to entities that would meet that definition had they been incorporated under companies legislation (excluding building societies).

If you use the FRSSE now you should consider whether you’ll want to move to Financial Reporting Standard (FRS 102) in the future. In this video Iain Selfridge discusses what the introduction of a new UK accounting framework from 1 January 2015 – new UK GAAP - means for small companies.

 

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A company qualifies as small (and eligible to use the FRSSE) if, during a financial year, it satisfies any two of:

  • Turnover less than £6,500,000
  • Total assets less than £3,260,000
  • Number of employees less than 50.

A company is ineligible from being a small company if it is a plc, a financial services or insurance company, or part of a group containing any of these or containing an European Economic Area (EEA) listed company