UK GAAP update: What lies ahead
With so much change taking place in financial reporting as the UK negotiates the transition to a new regime for small/medium and micro companies, Steve Collings presents an update on what is likely to happen over the next few months.
Financial reporting is currently experiencing significant amounts of change as the Financial Reporting Council (FRC) continues to grapple with the issues surrounding the new UK accounting standards (FRS 102, the FRSSE and micro-entities legislation). This article examines the current status of financial reporting and explains the likely developments that could take place in the coming months.
FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ is going to replace all extant FRSs/SSAPs and UITF Abstracts with effect for accounting periods commencing on or after 1 January 2015 (earlier adoption is permissible). The FRC said it wants FRS 102 to be a “stable platform” and that the standard itself will be reviewed every three years.
However, even before the starting date has arrived amendments have been proposed to FRS 102 to improve the standard in time for first-time adopters...
Register for free and log into AccountingWEB to read the full version of this article which discusses how the forthcoming financial reporting changes will affect:
- Charities SORP
- LLP SORP
- The FRSSE
Life at the FRC is clearly very busy! Financial reporting is currently undergoing the most significant amounts of change in a generation and professional bodies are keen to emphasise the importance of firms ensuring they are adequately prepared for the changes.
FRS 102 is to be applied retrospectively to the start of the earliest period reported in the financial statements (ie 1 January 2014 for a December 2015 year-end). There are no transitional provisions in the FRSSE (effective January 2015) and so there is no requirement to restate comparatives when FRSSE (effective January 2015) comes into effect.
Steve Collings is the audit and technical partner at Leavitt Walmsley Associates and the author of ‘Interpretation and Application of International Standards on Auditing’.