Compliance – hear from the experts

Compliance – the power of 33 important subjects, 2 industry experts, 1 key message

1. FRS 101 and 102

2. Updated HMRC iXBRL taxonomy – detailed P&L tagging

3. Auto enrolment

1- new accounting standards

Jon MartingaleIRIS Product Manager

5 key questions covered

1. What are FRS 101, 102 and FRSSE 2015?

2. What changes will the new standards bring?

3. Who will be affected?

4. When are the changes coming?

5. What can you do to prepare?

What are FRS101, 102 (and FRSSE 2015)?

New accounting standards for the UK

A suite of 4 standards:

1. FRS 100 Application of Financial Reporting Requirements

2. FRS 101 Reduced Disclosure Framework

3. FRS 102 The Financial Reporting Standard applicable in the UK and ROI

4. FRSSE 2015

Developed by the FRC

Based on IFRS and IFRS for SME, but with localisation and CA2006 changes

Set to replace the current UK GAAP

New standards are a completely new accounting framework – not just a change in accounting policy

What are the changes?

Presentation changes:1. ‘Balance sheet’ to ‘Statement of Financial Position’

2. ‘Debtors’ to become ‘Trade receivables’

and others… though old terminology still accepted

No cash flow exemption under FRS102 and presentation changes

Error correction required for ‘material’ errors – UK GAAP only requires ‘fundamental’ errors to be changed

Revaluation reserves to go

Numerous others… covered in 19th November webinar - iris.co.uk/webinars

Who will be affected?

Publicly owned Ltd Co have been using IFRS since 2005…

…now it’s the turn of…

1. Parent and subsidiaries of groups filing in IFRS may adopt FRS101FRS101 more likely to affect corporates / accountants in business

2. medium to large sized businesses will have to comply with FRS102FRS102 more likely to affect accountants in practice

3. Small entities will have to comply with FRSSE (2015)If eligible to apply FRSSE today, may continue to do so

When will the changes happen?The clock is already ticking…

FRS101 and 102 mandatory for accounting periods beginning on or after 1st January 2015

FRSSE 2015 is also 1st January 2015

Early adoption possible

What can you do to prepare?

1. Start planning tomorrow!

2. Read and research - including detailed seminar notes from today

3. Free IRIS guide and whitepaper available at iris.co.uk

4. Identify important aspects for your clients

5. Discuss changes with your clients well in advance

6. Engage with your software vendor

7. Join our webinar…

• Hold the date – 19th Nov 2013 @ 10:30am• Delivered by Steve Collings (industry expert, FRS102 author, AIA 2013 winner – Outstanding

Contribution)• Register at iris.co.uk/webinars

2 - iXBRL

Jon MartingaleIRIS Product Manager

Recent IRIS Accounts Production legislative changes

October 2010iXBRL accounts

April 2012iXBRL for group accounts, Chart level tagging, More standard notes, e.g. related parties, iXBRL warning reports for IFRS and Charities

October 2012iXBRL filing to Companies House, Ltd by Guarantee format

April 2013Audit Report update

October 2013Academies template, Updated HMRC taxonomy – iXBRL tagging of detailed P&L

Detailed P&L tagging

Update to the HMRC taxonomy

Mandatory for accounting periods ending on or after 1st April 2014

HMRC “expect the detailed profit and loss to be tagged in either the computations or the accounts but not both”

Tagging both “may cause the return to come under further scrutiny, especially if there are inconsistencies with duplicate tagging across the accounts and computations.”

No changes to Companies House iXBRL e-filing

Recommendations:The key is to tag one Detailed P&L only and ensure consistency in tagging

An integrated solution makes this so much easier

Detailed P&L tagging – IRIS integration makes it easier

IRIS - enhanced iXBRL tagging already here

Detailed P&L tagging – FAQsWill IRIS Accounts Production tag prior year data automatically? Yes – as per HMRC requirements, both the current year and prior year figures will be tagged.

We have changed some of the headings on the TPL in IRIS Accounts Production. Will this cause an issue with tagging?The tagging in IRIS is hierarchical and does allow some flexibility in changes to descriptions. Providing the heading is still in the same income or expense category, you should have no issues.

If you have changed the heading to something completely different, you will also need to manually change the iXBRL tag. This is a straightforward process in IRIS Accounts Production and is done in the tag editor before you submit to HMRC.

Will IRIS OpeniXBRL be updated to cater for the new HMRC tagging requirements? Yes – IRIS OpeniXBRL will be updated later in 2013 to support these changes.

3 - Auto enrolment

Robin ArmerRelationship Manager

Who does what?Scope of automatic enrolmentStaging and phasing timetable

Compliance with employer dutiesRegulator of workplace pension schemes and providers, including NEST

A new pension scheme established by statute, run as a trustPublic service obligation to accept all employers who want to use NEST to meet their employer duties

Non-eligible jobholder£5,668

£9,440

£0

Eligible jobholder

Entitled worker

16 22 SPA

Ann

ual E

arni

ngs

75Age

Employer dutiesWho qualifies for what

The staging process. How big and how many?

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Number of employers Number of workers

123,236 employers with

<30 workers

17 employers with >120,000 workers

7,982 employers with >90 workers

Designed for the target market

Clear communication

Online Travels withthe member

Award-winninginvestment approach

Delegated access

Ready for automatic enrolment

Great value

Employer journeyFirst you have to understand what you need to do to meet your duties. TPR’s guidance will help you do this. You can find this at tpr.gov.uk

Then get ready to use NEST. Follow our five practical steps to get started.

How NEST is helpingWebsite help and guidance

Guides to signing up and setting up

Guides to using NEST

Planning tools

Communication templates

Countdown emails

Make sure you meet key milestones and do the right things at the right times

www.nestpensions.org.uk

Compliance – IRIS has the power of 3 in hand1. FRS 101 and 102

2. Updated HMRC iXBRL taxonomy – detailed P&L tagging

3. Auto enrolment