A new accounting standard will be introduced by the Accounting Standards Board from July
2013 to replace UK GAAP for companies that are not publicly accountable.
This change won’t affect “small companies” (less than £6.5 million
turnover and £3.26 million of gross assets). However, medium and large private companies will have to adopt the Financial Reporting Standard for Medium-sized Entities (FRSME).
The key differences between FRSME and UK GAAP relate to the valuation of investment properties, goodwill, fixed assets, borrowing and development costs.