A client has requested for their trial balance to be translated to UK GAAP trial balance on Auditor's request. Not sure what they meant by translated tb, could this mean they just want their tb mapped in line with FRS 102, please? Or are there adjustments to make to the trial balance? As the trial balance will in the same currency as the prior year.
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"UK GAAP trial balance" sounds like a made up term to me. Ask them to get their auditors to define exactly what they want.
An enquiry along the lines of 'Can you ask your auditors to define exactly what they mean particularly in light of the fact that UK GAAP has been largely out of the window for over five years, having been, in the main, replaced by FRS102.' should do it.
I'd guess they are asking for a TB they can punch straight into their accounts production software to produce the statutory accounts as an attempt to obviate them from all responsibility to produce / sign off a set of compliant accounts. But maybe I'm just a cynic?
I would actually more say UK GAAP still exists and the likes of FRS102 etc are mere variants of its application.
Here is how ICAEW present
https://www.icaew.com/technical/financial-reporting/uk-gaap
So what I suspect they mean is the TB has all the debit/credit adjustments made that are needed re whichever particular reporting approach adopted, e.g. if FRS102 correct measurement via the TB of the financial instruments.
However given the manner of request , before doing anything I would ask them what they mean and do they expect a particular application of UK GAAP to be adopted.
Yep, point taken, sometimes FRS102 is referred to 'New UK GAAP'.I would actually more say UK GAAP still exists and the likes of FRS102 etc are mere variants of its application.
Problem is 'New UK GAAP' is then modified by triennial reviews and such like, meaning it's no longer new!
What are the GAAP currently used to maintain the records, if not UK GAAP?
Is it maintained in GBP, or some other currency?