Replies (19)
Please login or register to join the discussion.
FRSSE 2015
Steve
I've been trying to search the fairly opaque FRC website for a draft of FRSSE 2015, to no avail. Does it exist yet?
Comment from Grant Thornton
Earlier today we received the following statement from Joyce Grant, technical partner at Grant Thornton UK:
"Whilst the hard work of the standard setters is all but over, the hard work for preparers is just beginning. Although the headline issues from two years ago have been resolved, such as revaluation of fixed assets, the majority of companies will still find that they need to make changes to their accounts. The difficulty is that these differences may not always be obvious but could have the potential to alter profits, which will in turn affect a myriad of different aspects of a business, for instance banking covenants, tax bills and profit-related bonuses.
"What people need to figure out is precisely how this standard will affect their business, and what they can do to minimise potential negative impacts; this takes planning. One of the most talked about changes is the introduction of more fair value accounting, in particular for instruments such as foreign exchange forward contracts and interest rate swaps.
"Whilst we welcome this change as introducing greater transparency in the accounting for such instruments, there are likely to be real costs associated with the need to prepare, and have audited, valuations for these instruments.
"Companies with December year ends will need to be prepared to re-state their December 2013 balance sheet under the new standard, so where there could be measurement problems these will need to be tackled before the end of this year."
Dog's Breakfast
I'm sure that Joyce is right in that there may be any number of unexpected and probably unintended consequences of this dog's breakfast. However, the fact remains that it is a shorter dog's breakfast than the one it replaces.
It would be so good if the thinking could be joined up so that the CA regulations could be changed as well, the language aligned, and the structure for Micros and small companies all set up and harmonised at the same time. World peace and an end to poverty would be pretty good too!
In yer dreams!
Come on George, of course it doesn't!
Why bother with the transit vans when a management charge will usually do the trick?
don't be silly George
if any of these new standards addressed such matters it would create a real issue for the poor old auditors who will of course have advised them for £squillions with their consultancy hat on to buy those 100 transit vans at £150k a pop off that BVI subsidiary manned when hes not attending to the swimming pool by the guy who looks after the apartment block. Meanwhile the rest of us who live in the real world of transparent balance sheets thankfully will only have to deal with the revised FRSSE 2015 where of course such activity is condemned sine die under threat of an appearance at Moorgate Place.
more confusion
So now we have FRS 100, 101, 102 where we can use IFRS, FRSSE or full standards as before? Along with the new rules with EU groups where the parent resides in EU then the sub needs no audit as they will guarantee it etc etc, seems to me its getting more complex, lets just have an audit for everything and anything and get it over with.
OK Liaqat - here 'tis
FRS102 available now at:
https://frc.org.uk/Our-Work/Publications/Accounting-and-Reporting-Policy...
FRSSE 2008 & FRSSE 2012
I Can't wait to see where the differences lay between the two ?
Hopefully, we will get in 2 weeks.
FRSSE Amendments
Steve
I've become a FRSSE Geek!
Para 2.6 of the FRSSE and its footnote amended to change the wording on a small company's balance sheet, but they haven't changed para 2.30 which covers the same ground. Do they know it's never going to see the light of day?
Nigel
And it's likely to change anyway
The EU is currently reworking its company law directives, aims to combine the 2 existing directives into 1 and has said that it will make huge cuts in the disclosure requirements for small companies - i.e. those covered by the FRSSE.
It has said that disclosures should be restricted to about 10 things and that it will be illegal for individual member states to insist on greater disclosure. ICAEW has some pretty good FAQs about it.
This is supposed to happen in 2013, but as we know speedy change is not exactly the EU's strong suit.
We shall see.
Unfortunately......
Practitioners do notice and if it says one thing in one place in a standard and something else in another place, they're going to come to you or me for advice, and they tend not to believe us when we say "Er.........they got it wrong when they drafted the standard!"
ASB should have realised in 2008 that the small company regime does not represent "special provisions". Grrr.
I suppose if small company accounts are only going to be filed in abbreviated form, usually directly in iXBRL or via the COHo website, there aren't going to be many accounts rejected by CoHo.
However I still wonder about how it is that FRC can spell it out in such painstaking detail, whilst knowing it's likely to be superseded before it goes live, and then still make mistakes in the drafting. Ah well
Clarification please!
Can someone please clarify:
I am an Australian accounting student doing an assignment on the reporting systems in the UK. Now i believe listed companies are required to report based on IFRS as of 2005. Are the GAAP and the new standards relevant to listed companies or just small to medium?