New reporting requirements for companies – FRS 102
For accounting periods ending on or after 1 January 2015, companies are required to prepare accounts under a new UK GAAP.
Most companies will convert to FRS 102, a single standard replacing all existing accounting standards for UK GAAP. It is far less wordy than the previous combined standards and contains less guidance. The new standard will affect some companies more than others but all companies will need to consider potential changes to the basis on which they prepare their accounts and also disclosures within the financial statements. The current FRSSE is for one year only and then the FRSSE disappears with small companies able to take advantage of FRS 102 and the reduced disclosures. There are also complexities arising due to the changes in limits for companies classifies as small.
Each company will be affected differently and we can provide more specific advice as to how your company will be affected. The main areas affected by the transition to FRS 102 are as follows (although this is not an exhaustive list by any means):
- Property, plant & equipment
- Investment properties
- Financial instruments (including loans)
- Holiday pay accruals
- Business combinations
- Deferred tax
Companies may also wish to consider if they are eligible to use FRS 105, the new standard for micro entities.
We can help
We appreciate that the changes to FRS 102 may appear confusing and we’re able to advise on how they affect your company, specifically. Please email [email protected] or call 01527 558539 to discuss your requirements further.