IFRS and UK GAAP Update covers recent changes to international and UK reporting standards. Major changes to IFRS include new standards on consolidation, joint arrangements, and fair value measurement effective 2013. Projects underway address revenue recognition and leases. UK is replacing existing GAAP with 3 new standards - FRS 100, 101, and 102 effective 2015. FRS 101 allows reduced disclosure for qualifying entities. FRS 102 is a simplified, principles-based standard aligned with but not identical to IFRS for SMEs. Transition involves reconciling equity and profit under the new standards.
This slide is all about IFRS 2 share based payment. You can find its content summary & examples here. The link to access the video lectures is inserted in the final slide.
This slide is all about IFRS 2 share based payment. You can find its content summary & examples here. The link to access the video lectures is inserted in the final slide.
International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board
The effective date for IFRS 17 is now 2021. The new effective date will mean companies could start planning for the change in 2018 as part of being ready for the new standard by 2021.
In order to increase the sales, business houses are required to market their products over a larger territory and may generally split their business into certain divisions or parts, if the various certain divisions or parts, if the various parts or divisions are located in different parts of the same city as Chandni chowk, Karol bagh, Connaught place, Nehru place (in delhi) or in different cities of the same country as Calcutta, Chennai, Mumbai, Kanpur and Delhi (in india) or in different countries (in the world) as Canada, USA, England, Japan, U.S.S.R and Germany, these are known as branches, head office contracts the activities of various branches
As 5 Net Profit & Loss for the Prior Period Items and Changes in Accounting P...ram jangir
Here is Details study on Accounting Standard 5(AS-5) i.e. Net Profit & Loss for the Prior Period Items and Changes in Accounting Policy with amazing visual effects. Power Point Presentation on Accounting Standard 5
International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board
The effective date for IFRS 17 is now 2021. The new effective date will mean companies could start planning for the change in 2018 as part of being ready for the new standard by 2021.
In order to increase the sales, business houses are required to market their products over a larger territory and may generally split their business into certain divisions or parts, if the various certain divisions or parts, if the various parts or divisions are located in different parts of the same city as Chandni chowk, Karol bagh, Connaught place, Nehru place (in delhi) or in different cities of the same country as Calcutta, Chennai, Mumbai, Kanpur and Delhi (in india) or in different countries (in the world) as Canada, USA, England, Japan, U.S.S.R and Germany, these are known as branches, head office contracts the activities of various branches
As 5 Net Profit & Loss for the Prior Period Items and Changes in Accounting P...ram jangir
Here is Details study on Accounting Standard 5(AS-5) i.e. Net Profit & Loss for the Prior Period Items and Changes in Accounting Policy with amazing visual effects. Power Point Presentation on Accounting Standard 5
In this presentation I introduce a tool for strategic planning; Impact Mapping (http://impactmapping.org).
This is one of the best tools I've used to help us produce great, well communicated and easily understood strategic plans, by involving everyone needed to execute the plan.
This presentation is a continuation of my presentations about Mission, Vision and Strategic plans, but this time it's much more hands-on and practical.
UK GAAP - A Year of Change | Accountex 2015Sageukofficial
2015 sees the biggest change in UK reporting for a generation, with the mandatory adoption of FRS 102 and expected changes to the small companies’ regime and the FRSSE. It will be essential that the accountancy profession understand the extent of these changes and the practical issues surrounding transition, in order to minimise costs and maximise on potential that these new standards offer.
This presentation was made by Takatsugu Ochi, IASB, at the 18th Annual Meeting of OECD Senior Financial Management and Reporting Officials held at the OECD Conference Centre, Paris, on 1-2 March 2018
2014 Annual Accounting Update for Private EnterprisesWelch LLP
On Wednesday, Nov. 12, 2014, our experts will be hosted an annual update for Private Enterprises event where they covered a variety of topics important to your business - including accounting standards updates, tax updates, and operational updates.
Welch LLP invites you to join us for this complimentary breakfast presentation to help you better prepare for next year.
Topics Discussed:
- IFRS update
- ASPE update & improvements
- U.S. updates
- Tax updates
- Programs if you are exporting
- SR/ED (new enforcement measures, experiences in dealing with CRA)
- How to Prevent Fraud
Speakers:
- Shawn Kelso, CPA, CA - Director of Professional Standards
- Ken Brownlee, CPA, CA - Senior Manager
- Don Scott, FCPA, CA - Tax Partner, Director of Tax Services
- Terry Lavineway, CA - Senior Manager, Director of Business Incentives
- Andre Auger, CGA, CFE - Government Services Advisor
BKMSH From U.S. GAAP to IGAAP: The Shift to IFRSMojoFinancial
In 2008, the Securities and Exchange Commission (SEC) released a discussion roadmap regarding the adoption of International Financial Reporting Standards (IFRS) by U.S. companies in which entities that are interested in IFRS are allowed to file as early as 2011, even if the regular registration commences in 2014. Two years after the publication of the roadmap, the SEC announced that they would start considering the integration of IFRS into the country’s financial reporting system as soon as the specified readiness requirements are met and the U.S. GAAP and IFRS concurs.The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been busy working on the convergence of U.S GAAP and IFRS. Some of the most critical points of discussion revolve around the financial reports, financial tools, recognition of income, and lease accounting.
Sound governance and effective institutions are essential to achieve shared prosperity and sustained reductions in poverty.
Public accountability and proper governance contribute to better delivery of public services, support competition and growth, including through cooperation with private sector.
Quality information helps the government properly analyze risks and play their essential roles in resolving the complex and interconnected challenges in variety of sectors, including in health, social protection and education.
IFRS 15 - the new revenue recognition standard EY Belgium
The IASB and the FASB have jointly issued a new revenue standard, IFRS 15 Revenue from Contracts with Customers, which will replace the existing IFRS and US GAAP revenue guidance.Find out more in our comprhensive brochure.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
3. • IFRS update covering all recent major changes in
international reporting
• UK GAAP update including FRSs 100 to 102 –
the latest position and timeframe
• The wider implications of the transition to the new
reporting framework
Overview of the session
4. • IASB issued up to IFRS 13
• Global acceptance of IFRS gathering pace
• Discussions with US continuing
• Several important projects on-going….
IFRS – where are we now?
5. USA – US
GAAP
Canada –
IFRS in 2011
Brazil – IFRS
for listed
companies
from 2009,
banks from
2010
South Africa –
IFRS in 2005
China –
substantially
converged national
standards
Japan – IFRS for
some companies
from 2010
Australia –
IFRS in 2005
EU – IFRS in
2005
Saudi Arabia –
IFRS for
banking and
insurance
companies
Global acceptance of IFRS
6. • A common set of high quality global reporting standards
remain the priority of IASB and FASB
• IFRS and US standard setters worked together since 2002
on a number of major projects
• Key decisions made in 2007 to further harmonisation
• 2012 – SEC issued a report on IFRS possible
incorporation into US financial reporting regime, some of
the issues highlighted:
– Governance and funding
– Remaining differences between US GAAP and IFRS
– Industry specific guidance
– Education and training issues and costs of transition
• A “condorsement” approach is now being favoured
IFRS and the US
7. IFRS 9 Financial Instruments
IFRS 10 Consolidated Financial Statements
IFRS 11 Joint Arrangements
IFRS 12 Disclosure of Interests in Other Entities
IFRS 13 Fair Value Measurement
Recent IFRS issued
8. • IASB project to replace current financial instrument
standard IAS 39
• Will be effective from 1 January 2015
• Project is part complete – IFRS 9 issued 2009 and
revised 2010 and 2011
• Sections dealing with impairment and hedge
accounting remain to be finalised
IFRS 9 Financial instruments
9. • All effective from 1 January 2013
• At the same time IAS 27 and 28 were revised
• Changes are largely to do with definitions and
consolidation concepts
– Clarification of how the control of a subsidiary is determined
– Joint ventures meeting certain a certain definition accounted
for in same was as associates
– IFRS 12 is a disclosure standard focussing on the nature of
risks associated with interests in other entities
Group accounting standards revised and
replaced – IFRS 10,11,12
10. • IFRS 13 issued May 2011, effective 1 January 2013
• IFRS 3:
– applies when another IFRS requires or permits fair value
measurements or disclosures
– defines fair value
– sets out in a single IFRS a framework for measuring fair value
– requires disclosures about fair value measurements.
• ‘Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.’ i.e.
Fair value based on exit value
• A hierarchy is used to arrive at fair value
IFRS 13 Fair value
11. IFRS 13 Fair value
Level one inputs
• Unadjusted quoted prices in active markets for items
identical to the asset or liability being measured.
• e.g. Prices quoted on a stock exchange
Level two inputs
• Inputs other than quoted prices that are either
directly or indirectly observable for the asset or
liability being measured.
• e.g. Interest rates which underpin a valuation.
Level three inputs
• Unobservable inputs, to be used as a minimum
• e.g. Cash flow forecasts may be used to value an
entity that is not listed
12. • Revision to IAS 19 Employee Benefits – major
revision to the requirements, effective 1 Jan 2013
– Treatment of actuarial gains and losses (re-measurements)
– Presentation of items taken to profit or loss / comprehensive
income
• Other less significant changes as part of the
Improvements to IFRSs project
Other recent changes / amendments to
IFRS
13. • IASB and FASB joint project to clarify the principles
for revenue recognition
• The project aims to create an accounting standard
that will replace IAS 18 and IAS 11
• March 2013 – IASB and FASB deliberated the final
proposed standard and tentatively agreed effective
date 1 January 2017
• Standard due out very soon!
Update on major on-going projects 1
Revenue recognition
14. • IASB and FASB joint project to consider lease
classification and accounting and replace IAS 17
• Key issue is accounting for operating and finance
leases – current treatment has many drawbacks
• A new model “right of use accounting” has been
proposed
• Many deliberations on the application of the model
delayed development of the standard
• A revised exposure draft is due 2nd quarter 2013
Update on major on-going projects 2
Lease accounting
15. • Conceptual framework
• Narrow scope amendments
• Post implementation reviews
– IFRS 8 Operating Segments
– IFRS 3 Business Combinations
Other on-going projects
16. 230 pages (full IFRSs are 3,000+)
Simplified IFRSs
Completely stand-alone
Designed specifically for SMEs
considering user needs
Final standard issued July 2009
The IFRS for SMEs
17. • Not a new issue – the future of UK GAAP has been
under consideration for 10 years
• Existing UK GAAP is a mixture of old SAAPs, FRS
based on international equivalents, FRSSE etc
• Standards are inconsistent and the regime overly
complicated
• Standards not up to date with business practice
The New UK GAAP – why change?!
18. • All UK FRS and SSAPs to be replaced with a single
financial reporting standard
• The FRSSE will remain in existence but will be
subject to some changes
• A reduced disclosure framework is being introduced
for qualifying parent and subsidiary accounts applying
the recognition and measurement aspects of IFRS
Overview of the changes
19. • The new UK GAAP should result in financial reporting
standards that:
– Are broadly consistent with IFRS
– Reflect up to date thinking
– Are efficient and cost effective to apply
– Contain consistent principles
The FRC acknowledges that transitional costs will be
incurred but this should be offset by the simplification
of financial reporting.
Benefits of replacing current UK GAAP
20. • Which standard to apply
• Options available
FRS 100 Application of
Financial Reporting
Requirements
• Disclosure exemptions for
qualifying entities
• Applicable in group situations
FRS 101 Reduced
Disclosure Framework
• Replacement of UK SSAPs and
FRSs
• Simplified financial reporting
FRS 102 The Financial
Reporting Standard
applicable in the
United Kingdom and
Republic of Ireland
The new financial reporting standards
21. The reporting options explained
EU-IFRS
EU listed
consolidated
accounts
Any entity
voluntarily
FRS 101 or FRS 102
FRS 101 for
qualifying entities
part of a group
FRS 102 for other
reporting entities
FRSSE
Small entities
only
22. • Entities that are eligible to use the FRSSE but
currently do not do so may wish to consider adopting
the FRSSE rather than moving to apply FRS 102
• Entities that have voluntarily adopted EU-IFRS may
wish to move back to UK GAAP to benefit from the
simplified accounting rules of FRS 102
Considerations relevant to the options
available
23. • FRS 100,101 and 102 effective for periods beginning
on or after 1 January 2015
Effective dates and transition
24. • Accounts prepared using recognition and
measurement rules of EU-IFRS but without the full
disclosure requirements
• Who can use the reduced disclosure framework?
– Can be used in the individual financial statements of
qualifying entities i.e. members of a group that prepares
publically available consolidated financial statements
– Charities are excluded and cannot use FRS 101
• What are the benefits?
– Disclosure exemptions covering many different areas
including financial instruments, share-based payment,
impairment, fair values, related parties
– The disclosure exemptions are taken on an individual basis
FRS 101 The reduced disclosure framework
25. • To be used by the majority of large and medium sized
reporting entities
• FRS 102 is NOT the complete adoption of the IFRS
for SMEs in the UK
• However it is a step closer to aligning UK GAAP to
IFRS
• It is a simplified version of UK GAAP, in one volume,
easy to understand and navigate
FRS 102 The Financial Reporting Standard
The basics
26. • Additional content in FRS 102 for issues not covered
in IFRS
• FRS 102 has more options than the IFRS for SMEs
• Includes issues of relevance to public benefit entities
• Additional content for matters anticipated to be
changed in the IFRS for SMEs in the future
• Formats cross referenced to CA 2006
• Requirement to consolidate and exclusions based on
CA 2006
FRS 102 The Financial Reporting Standard
Relationship with IFRS for SME
27. Investment properties
•to be carried at fair value with gains / losses recognise in profit
Intangible assets
•to be recognised separately from goodwill in a business combination
Goodwill and intangibles
•Useful life will not exceed 5 years when no reliable estimate can be made
Lease classification
•will not be subject to the “90% rule”
Deferred tax liabilities
•New liabilities likely to arise and amended measurement basis
IFRS 102 The Financial Reporting Standard
Differences from current UK GAAP
28. • Balance Sheet = Statement of Financial Position
• Profit and Loss Account = Statement of Comprehensive
Income/Income Statement/Statement of Profit or Loss
• Statement of Recognised Gains and Losses = Statement
of Changes in Equity
• Cash Flow Statement = Statement of Cash Flows
• Minority Interests = Non-Controlling Interests
IFRS 102 The Financial Reporting Standard
Differences from current UK GAAP
29. • First thing to do is to identify the ‘date of transition’.
• Date of transition is the start of the earliest period
reported in the financial statements
FRS 102 The Financial Reporting Standard
First time adoption
30. First FRS 102
accounts
31 Dec 1531 Dec 1431 Dec 13
Comparatives
Reconcile
equity
Reconcile
equity
Reconcile
profit
Effective dates and transition
Additional disclosures are required in the first
FRS 102 compliant accounts
31. Process of first-time adoption involves:
• Recognising all assets and liabilities whose
recognition is required by this FRS.
• Not recognising items as assets and liabilities if
this FRS does not permit such recognition.
• Reclassifying items that it recognised under its
previous FR framework as one type of asset,
liability or component of equity, but are a different
type of asset, liability or component of equity under
this FRS; and
• Applying this FRS in measuring all recognised
assets and liabilities.
FRS 102 First time adoption
32. FRS 102 First time adoption
Practical matters to consider
Taxation
implications
Training for staff /
clients
Accounting
software update
Audit implications
Impact on
agreements e.g.
debt covenants
Impact on
distributable
reserves
Changes to
accounting policies
Editor's Notes
Since 2008 approx 1,200 foreign companies listed in US can use IFRS without reconciliation to US GAAP
Target hedge accounting rules Q3 2013
Project has a long history: ED 2010, redeliberations 2012,
Followed by publically accountable entities
A comprehensive review of the IFRS for SMEs being undertaken
Notes for speaker:
FRS 100 about which reporting framework reporting entities fall under / options available
FRS 101 about certain companies allowed to follow IFRS but with reduced disclosure requirements
FRS 102 only issued March 2013 and is the replacement of UK SSAPs and FRSs
FRSSE continues to be available and while it will be changed to align with the new reporting framework it is fundamentally the same as before. Small changes have been made in respect of goodwill and intangible assets, impairment and related parties.
Also worth noting that current EU deliberations on accounting for small companies (micro companies) will also affect the FRSSE.
There is no special standard for public sector entities, FRS 102 contains specific guidance within it, paragraphs are prefixed by “PBE” (public benefit entities). SORPS still exist and some will be amended to align with FRS 102.
NB Entities that are required by law or regulation to follow EU-IFRS must continue to use EU-IFRS and are not allowed to adopt the reduced disclosure framework.
Entities that voluntarily adopt EU-IFRS until recently could only move back to UK GAAP if there was a “relevant change of circumstance” e.g. ceasing to be a subsidiary of an EU listed Group. CA 2006 was amended to make this change easier to FRS 102 under SI 2012/2301).
To use the RDF the shareholders must be notified in writing and there must be no objections.
The accounts are not technically “IAS individual accounts” as they are prepared using a UK GAAP standard, FRS 101, and the reduced disclosures mean that they don’t comply fully with EU-IFRS.
Where an exemption is not taken, e.g. choose to produce a cash flow statement, then the full version of the relevant IFRS must be followed.
Some exemptions are not allowed for financial institutions i.e. financial instruments and fair values
Additional content includes:
Merger accounting (FRS 102 19.27-33)
Heritage assets (34.47)
Options include:
Borrowing costs – permit capitalisation (FRS 102 25.2)
Development costs – permit capitalisation where criteria met (18.16 A-G)
PPE and intangibles – permit revaluation (17.15.b)
Anticipated changes to the IFRS for SMEs:
Employee benefits (classification of P+L items)
Subsidiaries held for resale
There are many differences and impact will depend entirely on the circumstances of the individual company. Impact assessment is very important.
Also comprehensive guidance on financial instruments broadly consistent with IFRS 9. And changes to accounting for defined benefit pension plans.
Disclosures include an explicit and unreserved statement of compliance with FRS 102 and a description of each change in accounting policy.
To use the RDF the shareholders must be notified in writing and there must be no objections.
The accounts are not technically “IAS individual accounts” as they are prepared using a UK GAAP standard, FRS 101, and the reduced disclosures mean that they don’t comply fully with EU-IFRS.
Where an exemption is not taken, e.g. choose to produce a cash flow statement, then the full version of the relevant IFRS must be followed.
Some exemptions are not allowed for financial institutions i.e. financial instruments and fair values