Many (if not all) accountants are aware that UK GAAP in its current form is set for significant change and it is likely that the Financial Reporting Council (FRC) will announce this year that the new ‘Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS 102) will be implemented for accounting periods commencing on or after 1 January 2015 following the comment period which closed on 30 April 2012, explains Steve Collings.
There are some notable differences between current UK GAAP and the new FRS 102 which have been discussed in previous articles. There is one significant change in the new FRS 102 that has caused an element of controversy among accountants, which is the proposed accounting treatment for investment property.
Many clients (including those that report under the FRSSE (effective April 2008)) hold investment property on the balance sheet. Those companies that are not eligible to use the FRSSE (effective April 2008) will account for investment property under SSAP 19 Accounting for Investment Properties.
About Steven Collings
Steve Collings, FMAAT FCCA is the audit and technical partner at Leavitt Walmsley Associates Ltd where Steve trained and qualified.