ASB chairman favours three-tier reporting system

Preparers and users no longer find the need to maintain two GAAPs but are now considering a two to three-tier reporting system

Moves to adopt a two or three-tier system of financial reporting are being considered in the UK.

Accounting Standards Board chairman Ian Mackintosh told delegates at the ICAEW's Financial Reporting conference that recent roundtables in London, Edinburgh and Dublin revealed that the debate has moved beyond the question of retaining two sets of GAAP.

'The debate has now moved on to whether there should be a three-tier or two-tier system of reporting in the UK and Ireland. A three-tier system would see listed companies, and perhaps other large or important entities, applying full IFRS; unlisted companies other than the smallest ones would apply the IFRS for SMEs; and the smallest layer would continue to apply the Financial Reporting Standard for Smaller Entities,' said Mackintosh.

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