Dear colleagues, I am preparing a set if accounts under FRS102 for a client. I normally prepared accounts under FR105 (micro), so FRS102 is not my area of expertise. I wanted to find out if the amortised method compulsory under FRS102 or we can do without it for a simple loan? Thanks.
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Materiality is the issue to consider
I only have 5 Not micro companies and in each company the materiality of any loan means keep it simple
I'm not exactly sure what method you're thinking of here - maybe a method for long term debtors where you should discount the amount?
If it's straightforward loan from a mainstream lender, it's unlikely that there is anything that demands any fancy accounting. But if you're not sure, FRS102 can be downloaded for free from the FRC website. And you could always come back with some specifics.
Even worse if an interest free loan from Director or associated company
Some accounting theory from the big boys really makes simple accounting not simple