New UK Generally Accepted Accounting Practice (GAAP)

Are you aware that New UK GAAP comes into force shortly and will impact on how your financial accounts are completed and recorded for submission?

What are the Financial Reporting Standards (FRSs)?

FRS100           Application of Financial Reporting Requirements
FRS 101          Reduced disclosure framework (IFRS)
FRS 102          The FRS Applicable to UK and Ireland (Sch 1A for small entities – same recognition and measurement, reduced presentation and disclosure)
FRS 103          Insurance contracts
FRS 104          Interim Financial Reporting
FRS 105          The FRS applicable to Micro entities

for an overview of the history and development of UK accounting standards, please click here

What are the size criteria?

What areas relate to the key differences between the old and new FRSs?

  • Investment Properties
  • Investments in listed shares
  • Goodwill/intangibles
  • Lease incentives
  • Basic Financial Instruments (cash, bank, trade debtors / creditors, bonds & similar investments, loans especially with related parties)
  • Employee benefits (such as accrual for holidays)
  • Deferred tax
  • Share based payments (eg share option schemes)

What is compulsory in a set of FRS 102 accounts?

  • Balance sheet /statement of financial position
  • Profit and loss account and/or statement of comprehensive income
  • Directors’ report 
  • Notes (NB only where such items exist)
    1. Accounting policies
    2. Revalued fixed assets
    3. Financial instruments/other assets at fair value
    4. Commitments/Guarantees/Contingencies
    5. Directors advances, credits & guarantees
    6. Exceptional items
    7. Amounts due >1 yr,  > 5 yrs and security
    8. Average number of employees
    9. Fixed assets
    10. Parent undertaking information
    11. Off balance sheet arrangements
    12. Post balance sheet events
    13. Related party transactions
    14. Change in acs policies, estimates and Prior Period Errors
    15. Transition reconciliations (yr one only)
    16. Share Capital
    17. Others as needed to give True and Fair View
    18. Company information (legal form, country of incorp, reg no, reg office & place of business if different)

If you would like to discuss these changes further and understand how they impact you, then please do not hesitate to contact us.