New guide for small and micro-sized entities helps with financial reporting requirements
ICAS has published a new guide for members, which aims to help them apply the new financial reporting requirements for small and micro-sized entities.
With the withdrawal of the FRSSE for accounting periods beginning on or after 1 January 2016, all small entities in the UK must start preparing their accounts under one of the new UK accounting standards – FRS 105, FRS 102 or FRS 102 Section 1A.
Company law has also changed recently as result of the implementation of the EU Accounting Directive, affecting areas such as the size thresholds for small companies. The aim of the guide is therefore to summarise the key areas of change that small entities and their advisors need to be aware of.
The guidance covers the following topics:
- The accounting options available to small entities under new UK GAAP.
- The requirements of the micro-entities regime under company law and FRS 105.
- The key accounting changes necessitated by FRS 102 and FRS 102 section 1A.
- The filing requirements for small companies.
- The tax implications of the new accounting standards.
The guide has now been updated to reflect the main changes to FRS 102 proposed by the FRC as part of their triennial review of the standard, which is currently open for comment until 30 June 2017.
The proposed changes are expected to take effect for accounting periods beginning on or after 1 January 2019.