Technical Update video - June
James Barbour's first monthly update is now available and details key things you need to know in the areas of Financial Reporting and the UK's membership of the EU.
Topics for June
In the first of his new monthly video updates, James Barbour, ICAS Director Technical Policy, outlines key areas of interest for CAs in the areas of Financial Reporting and the UK's membership of the EU.
This video includes information on:
New UK GAAP Reminder
- New GAAP is now mandatory - This came into effect for accounting periods commencing on or afteron 1 January, 2015.
- SSAPs: FRSs; and UITF abstracts were also withdrawn at that point.
- FRSSE will be removed for accounting periods on or after 1 January 2016.
EU Accounting Directive
- New legislation has introduced the requirements for the new EU Accounting Directive.
- These apply for accounting periods on or after 1 January 2016.
- Early adoption is available for some aspects of these regulations.
- For small companies - the small company financial reporting thresholds are set to increase.
ICAS responses to FRC exposure drafts for UK GAAP
- These focus on smaller/ micro entities.
- Expect FRC proposals to be be substantively introduced.
FRS 105 - Micro-entities
- Expect this to be introduced by the FRC.
- Details requirements for micro entities.
- Simplified version of FRS102 with reduced requirements.
Other small entities
- Small entities will still have to comply with FRS 102 but can comply with a reduced disclosure frame work in a new section in FRS 102.
FRS 101 proposed amendments
- Amendments will maintain consistency with company law.
- Greater flexibility in profit and loss account / balance sheet format.
- Presentation of accounts can now be more similar to format of IFRS accounts.
FRS 102 - Defined Benefit Pension Schem Obligations
- Amended from 1 January 2015 - where FRS 102 deficit is reflected in balance sheet
- Not yet reflected in the full version of FRS 102 but due to be revised soon.
- For entities already recognising assets or liabilities for defined benefit plans in accordance with FRS 102, no additional liabilities need be recognised in respect of a 'schedule of contributions'.
FRS 102 - Share base payment
- To be brought into line with FRS 20 / IFRS 2.
- Aims to reduce compliance costs and improve financial reporting quality.
- IASB due to publish new leasing standard before end of 2015 to come into effect in 2019.
- A replacement insurance standard should be published by 2016 to replace IFRS 4.
IASB Principles of Disclosure
- A discussion paper is being drafted by the IASB on the Principle of Disclosure.
- Based on IAS1 IAS7 & IAS8.
- ICAS has published a paper examining the impact of a possible UK exit from the EU.
- The paper features the impact under various subject areas consolidated into one report.
- View the paper >
If you have any questions regarding the content of the video, feedback or suggestions for future topics/subject matter - Please contact James Barbour