FRS 105 to FRS 102 1A

Transition from FRS 105 to FRS 102 1A

Didn't find your answer?

Hi folks,

Is anyone able to help me, I have 2 managers at logger heads on a client converting from FRS 105 to FRS 102 1A. The property needs revaluing, I have one manager saying just revalue at the year end and then every 2 years there after and I have another saying revalue back to 2016 (being mandated date to use FRS 102 1A) and value yearly there after.

They can't agree on a way forward, so I've taken on myself to get answers from the AccountingWeb community :-)

Replies (9)

Please login or register to join the discussion.

RLI
By lionofludesch
16th Oct 2023 13:44

I was at Loggerheads last year. Nice place for a walk.

Thanks (0)
Danny Kent
By Viciuno
16th Oct 2023 13:59

Transitional arrangements are set out in the FRS. Have you looked there?

Thanks (0)
Replying to Viciuno:
avatar
By Accruals
16th Oct 2023 14:43

I’m junior sorry, I’ve been looking over it and I found the answer but both managers keep saying different things and dare not incur someone’s wrath by doing what I thought (read in the FRS) and have this amended AGAIN.

Thanks (0)
Replying to Accruals:
RLI
By lionofludesch
16th Oct 2023 16:24

Accruals wrote:

I’m junior sorry, I’ve been looking over it and I found the answer but both managers keep saying different things and dare not incur someone’s wrath by doing what I thought (read in the FRS) and have this amended AGAIN.

If you're junior, it's not your problem.

Just cover your backside by recording your research, what your conclusions are, what your managers think, which one had the casting vote and then time-stamp it by emailing it to yourself.

Thanks (2)
avatar
By Bobbo
16th Oct 2023 14:36

Where did 2016 come from?

The date of transition will be the opening day of the earliest period presented in these accounts.

E.g. if these are 31/03/2023 accounts then your date of transition would be the first day of the comparative period, 01/04/2021.

Thanks (1)
Replying to Bobbo:
avatar
By Accruals
16th Oct 2023 14:46

One of my managers, I read the FRS and agree with what you’ve said (this is what my other manager said) but when it went for review the other manager basically said it was all wrong and I need to back date it all. They are now at logger heads and being a junior I didn’t want to be in trouble for disagreeing or even showing up the other manager, it also made me think I was wrong when in fact I was right………thank you again for the response, I’m just going to send it to my other manager and get them to sign it off but also back up what I’ve done for the revaluation in my file notes to state everything in case the other one picks it up.

Thanks (0)
Ivor Windybottom
By Ivor Windybottom
16th Oct 2023 14:46

Contact the ICAEW technical help (or whichever body you are regulated by).
You may then get something that is even more trusted by your colleagues than an Accounting Web post!

Thanks (1)
avatar
By frankfx
16th Oct 2023 16:19

OP are you studying?

What do your own manuals and Tutors have to say.?

Managers ask them to evidence their assertions.

cross referencedto :

client account's

firm's checklist

firm's knowledge base. cpd courses and the like.

plus the relevant sections of FRS

The partner responsible for the accounts may have a few words to say on this....I certainly hope so.

Does your firm have a weekly " toolbox talk"?

Raise the question there, you may be awarded a Slice of cake for question of the week.

OP you need to ensure that you are acquiring sound knowledge.

Google: Steve Collings

or better still refer to your office copy of his reference titles?!!

OP
Let us know the concensus view at your firm, and supporting citations.

Awebbers can then vote.

Thank you

Thanks (0)
John Toon
By John Toon
17th Oct 2023 09:53

Neither are right...

You revalue at the date of transition to FRS 102 1A - that's the start of the comparative period, for the purposes of presentation, and then subsequently at each balance sheet date. You also need to bring in deferred tax balances for both the revaluation and other timing differences, where appropriate.

You may also have depreciation in the comparative and current period to reverse and a revised charge to put through, but that will also be determined by the residual value of the asset and the UEL.

Don't forget any other transitional adjustments that may be necessary and check out the reliefs (albeit there are few)

Thanks (1)