Do dormant accounts need to be resubmitted?
Or simply change references in accounts?
Thanks
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Replies (7)
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1 Why do you need to change to reporting under IFRS? Unless it's a matter of group policy, I can't immediately think of a reason why you would need to change for a dormant company
2 What are the differences between the two bases of preparation? If there are any, possibly you're no longer dormant.
3 Changes and corrections are normally dealt with as a restatement of prior period i the new financial statements. It's relatively unusual to refile.
Only found out that it is group policy so the new trading accounts for 30.09.2024 need to be under IFRS.
So ignore the old dormant accounts filed under FRS102 and prepare non-dormant IFRS accounts going forward?
You still need to address q2 above. I think it's unlikely that there are any differences between requirements for FRS102 and IFRS that would affect a dormant company, or make you non-dormant.
Assuming no accounting differences, it makes no practical difference what regime you declare as the reporting basis. So I would quietly ignore the group instruction. Perhaps have a quiet face to face word with auditors. If you're making a change from FRS to IFRS, that will have to go through all their technical people and cause lots of ripples (and cost).
The dormant accounts are empty except for small share capital.
The trading accounts will not be empty and have lots of transactions.
So, for that reason it makes sense to report under IFRS. The only thing that will be impacted is the declaration in the notes. My question really is, is it acceptable to change from FRS102 to IFRS if it doesn't make any difference to financials.
You started talking about a dormant entity. It it's empty it makes f all difference. But as I said it'll set all sorts running with your auditors if suddenly change.
But now you've mentioned a trading entity. There are a few areas where IFRS differs. Investment property. Fancy loans and financial products that will all be controlled at Group anyway. Leasing. Maybe revenue recognition.
If there are differences, you should already be doing monthly reporting on IFRS basis. Understand those differences before you start creating a whole lot of noise about nothing.
The dormant accounts used FRS102 in error. Everyone including group and auditors are expecting IFRS for the first year of trading.
I'll take your answer of f all difference to mean that it is fine to simply change the reference in the notes to be IFRS and prepare accordingly.