uk gaap is dead, long live uk gaap! may 2014

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UK GAAP is dead, long live UK GAAP!May 2014


Overview

The current UK regime

Outline of the new UK regime

FRS 102 The Financial Reporting Standard

Resources


Current UK financial reporting regime


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


New UK financial reporting regime


The new standards


FRS 100 The application requirements

What standards to

apply

When to follow a SORP

When can the Reduced Disclosure Framework

apply

Transitional arrangement

s


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


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


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


Mandatory adoption

Periods commencing 1 January

2015

Early adoption

Periods ending 31 December

2012

Effective date


Dat

e of

tran

sitio

n1 January 2014

Per

iod

com

men

cing1 January

2015

Per

iod

end31

December 2015

Effective date


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


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


Mind your language


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


Financial Reporting Faculty resources


New UK GAAP Resources


icaew.com/newukgaap


New UK GAAP FAQs


FRF iPhone, iPad and Android App – free to download

Standards Tracker example

uk gaap is dead, long live uk gaap! may 2014

Documents

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