UK GAAP is dead, long live UK GAAP! May 2014
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Transcript of UK GAAP is dead, long live UK GAAP! May 2014
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UK GAAP is dead, long live UK GAAP!May 2014
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Overview
The current UK regime
Outline of the new UK regime
FRS 102 The Financial Reporting Standard
Resources
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Current UK financial reporting regime
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The current UK financial reporting regime
• Mandatory for listed and AIM companies in the consolidated financial statements
• Can be voluntarily adopted by most other companies
EU-adopted IFRSs
• Available to all companies not required to apply EU-adopted IFRSs
• Includes FRSs, SSAPs, UITF Abstracts
UK GAAP (excluding the
FRSSE)
• Available to most ‘small’ companies, as defined by CA 2006FRSSE
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New UK financial reporting regime
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The new standards
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FRS 100 The application requirements
What standards to
apply
When to follow a SORP
When can the Reduced Disclosure Framework
apply
Transitional arrangement
s
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FRS 101 Reduced Disclosure Framework
Available for individual financial statements of
parents and subsidiaries
List of disclosure exemptions from EU-adopted IFRS
Accounts are Companies Act accounts therefore must comply with legal
requirements
Statements otherwise comply with EU-adopted
IFRS
Qualifying entities
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Based on IFRS for SMEs – but with differences Wider scope More accounting options
Reduced disclosures for qualifying entities 35 sections Replaces FRSs, UITF
Abstracts and SSAPs
FRS 102 The Financial Reporting Standard
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What are the options?
EU-adopted IFRS Mandatory for listed and AIM companies Can be voluntarily adopted by most other companies
Reduced Disclosure Framework (FRS 101)
Qualifying entities who otherwise adopt the recognition, measurement and disclosure requirements of EU-endorsed IFRS
The Financial Reporting Standard (FRS 102)
For all entities not applying EU-adopted IFRS, FRS 101 or the FRSSE preparing financial statements which give T&F view
FRSSE Available to most ‘small’ companies, as defined by CA 2006
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Mandatory adoption
Periods commencing 1 January
2015
Early adoption
Periods ending 31 December
2012
Effective date
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Dat
e of
tran
sitio
n1 January 2014
Per
iod
com
men
cing1 January
2015
Per
iod
end31
December 2015
Effective date
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FRS 102 The Financial Reporting Standard applicable in the UK and ROI
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Format of the financial statements
Primary statements• Statement of financial
position• Separate income
statement and statement of comprehensive income or single statement of comprehensive income
• Statement of changes in equity
• Statement of cash flows
Notes
Company law formats continue to apply
Flexible regarding the titles of the primary statements
A single statement of income and retained earnings may be presented in some circumstances
The statement of cash flows analyses movements in cash and cash equivalents between changes arising from operating activities, investing activities and financing activities
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Mind your language
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Major differences
Deferred tax
Investment properties
Defined benefit pension plans
Holiday pay accruals
Lease incentives
Useful life of goodwill & intangibles
Identifying goodwill and intangibles
Financial instruments
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Financial Reporting Faculty resources
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New UK GAAP Resources
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icaew.com/newukgaap
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New UK GAAP FAQs
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FRF iPhone, iPad and Android App – free to download
Standards Tracker example