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
What are the size criteria?
What areas relate to the key differences between the old and new FRSs?
- Investment Properties
- Investments in listed shares
- 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)
- Accounting policies
- Revalued fixed assets
- Financial instruments/other assets at fair value
- Directors advances, credits & guarantees
- Exceptional items
- Amounts due >1 yr, > 5 yrs and security
- Average number of employees
- Fixed assets
- Parent undertaking information
- Off balance sheet arrangements
- Post balance sheet events
- Related party transactions
- Change in acs policies, estimates and Prior Period Errors
- Transition reconciliations (yr one only)
- Share Capital
- Others as needed to give True and Fair View
- 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.