2015 UK GAAP ACCOUNTS UK GAAP Factsheet - Extract

2015 UK GAAP ACCOUNTS
UK GAAP Factsheet - Extract
Published 3 June 2015
Last updated 3 June 2015
2015 UK GAAP Accounts
This factsheet highlights the new and modified UK GAAP
requirements that are mandatory for accounting periods
beginning in 2015. These requirements will also apply to those
entities adopting the new financial reporting regime early.
This is an extract from the full factsheet
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Section 1
1
Overview
1
Section 2
2
Links to regulations
2
Section 3
3
Summary of the changes
3
Section 4
4
The UK financial reporting regime 4
Section 1
Section 5
7
Overview
FRSSE 2015
7
A new regime for 2015
2015 brings radical change for many UK companies as all the previous
FRSs, SSAPs and UITF Abstracts – with the exception of the FRSSE – are
replaced by a set of new standards with effect for accounting periods
beginning on or after 1 January 2015.
Section 6
8
Proposed changes to the new
regime
Contacts and further help
8
10
A changing regime for small and micro-entities
Financial reporting for small and micro-entities is still going through a
period of significant change. Regulations came into force in 2013
permitting micro-entities to prepare simpler accounts. Further
regulations issued in April 2015 will change the disclosure requirements
for companies qualifying as small.
As a result of these legislative changes, the FRC is proposing to
withdraw the FRSSE, bring small entities within the scope of FRS 102
and issue a new standard, the proposed FRS 105 The Financial Reporting
Standard applicable to the Micro-entities Regime. These changes are
proposed to come into effect for 2016 with early adoption expected to
be generally available.
Other regulatory changes
This factsheet does not include details of other regulatory changes
affecting UK entities. More information on such changes can be found
in our UK Regulation for Company Accounts factsheet.
1
Section 2
Links to regulations
Using the links and margin notes in this document
The margin notes in this factsheet identify relevant sections of standards and other
regulations – these sections cannot be considered in isolation when applying them
in practice.
You might find it useful to download, or print out, relevant section(s) of the standard(s)
so that you can refer to them when using this document.
Standards
Key regulations for this factsheet
FRS 100 Application of Financial Reporting Requirements
FRS 101 Reduced Disclosure Framework
FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland
Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Pension obligations
FRS 103 Insurance Contracts
FRS 104 Interim Financial Reporting
The Financial Reporting Standard for Smaller Entities (2015)
Other relevant regulations
FRS 102 – Editorial Amendments and Clarification Statements
FRC Staff Education Notes
Companies Act 2006
SI 2013/3008 The Small Companies (Micro-Entities’ Accounts) Regulations 2013
SI 2015/980 The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015
Foreword to Accounting Standards (March 2015)
FRED 57 Draft amendments to FRS 101 Reduced Disclosure Framework (2014/15 Cycle)
FRC Consultation Overview FRED 58, 59 and 60
FRED 58 Draft FRS 105 - The Financial Reporting Standard applicable to the Micro-entities Regime
FRED 59 Draft Amendments to FRS 102 - Small entities and other minor amendments
FRED 60 Draft Amendments to FRS 100 and FRS 101
FRED 61 Draft Amendments to FRS 102 - Share-based payment transactions with cash alternatives
UK GAAP Factsheet - Extract: 2015 UK GAAP Accounts Published 3 June 2015, last updated 3 June 2015
2
Section 3
Summary of the changes
New standards
For accounting periods beginning on or after 1 January 2015 all accounting standards and
UITF abstracts previously issued, with the exception of the FRSSE, are withdrawn and
replaced by an entirely new set of accounting standards, often referred to as the ‘new UK
financial reporting regime’ or the ‘new UK GAAP’. The Financial Reporting Faculty has
published a series of factsheets on the new regime which can be found
at icaew.com/newukgaap. In this factsheet we provide an overview of the new financial
reporting requirements that are mandatory for accounting periods beginning on 1 January
2015 and beyond.
Further faculty factsheets
Answers to frequently asked
questions about the new standards
and the new regime can be found in
the factsheet The New UK Regime.
New and amended standards applicable to accounting periods beginning in 2015
Title
Key issues
Mandatory application date
FRS 100 Application of Financial Reporting
Sets out the financial reporting requirements
Annual periods beginning on or
Requirements
for UK and Republic of Ireland entities.
after 1 January 2015.
FRS 101 Reduced Disclosure Framework
Sets out a reduced disclosure framework
Annual periods beginning on or
which addresses the financial reporting
after 1 January 2015.
requirements and disclosure requirements for
the individual financial statements of
qualifying subsidiaries and parents that
otherwise apply the recognition,
measurement and disclosure requirements of
EU-adopted IFRSs.
FRS 102 The Financial Reporting Standard
Sets out the financial reporting requirements
Annual periods beginning on or
applicable in the UK and Republic of Ireland
for entities that are not applying EU-adopted
after 1 January 2015.
IFRSs, FRS 101 or the FRSSE.
FRS 103 Insurance Contracts
Consolidates existing financial reporting
Annual periods beginning on or
requirements and guidance for insurance
after 1 January 2015.
contracts. It applies to entities that have
adopted FRS 102.
FRS 104 Interim Financial Reporting
Sets out the financial reporting requirements
Interim periods beginning on or
for interim financial reports, replacing the
after 1 January 2015.
Half-yearly financial reports statement issued
by the Accounting Standards Board (ASB) in
2007 1. It does not in itself require an entity to
prepare an interim financial report.
The Financial Reporting Standard for Smaller
Consequential amendments made to reflect
Annual periods beginning on or
Entities (effective 1 January 2015)
the new reporting framework.
after 1 January 2015.
1
The FRC has also withdrawn the Reporting Statement Preliminary announcements, originally issued
by the ASB.
UK GAAP Factsheet - Extract: 2015 UK GAAP Accounts Published 3 June 2015, last updated 3 June 2015
3
Section 4
The UK financial reporting regime
The new standards
Mandatory date: Annual periods beginning on or after 1 January 2015. Early application
is generally permitted, but for an entity within the scope of a SORP early application is
allowed only if it early adopts the relevant SORP or legal requirements for the preparation
of financial statements.
The new UK financial reporting regime currently consists of the following standards:
• FRS 100 Application of Financial Reporting Requirements;
• FRS 101 Reduced Disclosure Framework;
• FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland;
• FRS 103 Insurance Contracts; and
• The Financial Reporting Standard for Smaller Entities (FRSSE).
There is also a new standard for those preparing interim accounts – FRS 104 Interim
Financial Reporting.
While the FRSSE continues to be available for those entities that qualify to use it, see
section 5 for more details of recent changes to this standard and section 6 for details of
proposals that would ultimately lead to its withdrawal.
Practical tip: make sure you have the right version of the standards
Revised versions of both FRS 101 and FRS 102 were published in August 2014 incorporating a
number of amendments. All entities should now refer to the latest version and the subsequent
Amendment to FRS 102 – Pension obligations.
FRS 100
FRS 100 sets out the overall framework for financial reporting, explaining:
• which standards apply to which types of entity;
• when an entity can apply the reduced disclosure framework; and
• when an entity should follow a SORP.
Further faculty factsheets
Answers to frequently asked
questions about the new financial
reporting framework can be found
in the factsheet The New UK Regime.
The Application Guidance in FRS 100 provides guidance on interpreting the meaning of
equivalence. This will be relevant to intermediate parents seeking exemption from the
preparation of consolidated accounts in accordance with Section 401 of the Companies
Act 2006, and qualifying entities seeking exemption from certain disclosure requirements
in accordance with FRS 101 or FRS 102 (see below).
FRS 101
FRS 101 sets out a reduced disclosure framework that is available in the individual financial
statements of qualifying entities provided certain criteria are met. Qualifying entities are
those entities that are members of a group that prepares consolidated financial statements
that are publicly available, that are intended to give a true and fair view and in which that
member is consolidated.
Further faculty factsheets
The factsheet Reduced Disclosure
Framework is designed to assist
those adopting FRS 101.
These disclosure exemptions apply to entities that otherwise apply the recognition,
measurement and disclosure requirements of EU-adopted IFRSs – as amended in certain
instances to comply with UK law – and are available not only in subsidiary financial
statements but also in the individual financial statements of both intermediate and
ultimate parents.
FRS 102
The majority of large and medium-sized UK entities will apply FRS 102 when preparing
their annual financial statements for accounting periods beginning on or after
1 January 2015. More specifically, the new standard will apply to all entities that are
neither required nor elect to apply EU-adopted IFRSs, FRS 101’s reduced disclosure
framework or the FRSSE.
UK GAAP Factsheet - Extract: 2015 UK GAAP Accounts Published 3 June 2015, last updated 3 June 2015
Further faculty factsheets
The factsheet The New Financial
Reporting Standard provides an
overview of FRS 102.
4
Contacts and further help
Factsheets for faculty members
This factsheet is part of a series designed to provide practical help for
Financial Reporting Faculty members in exercising their professional
judgement.
The faculty cannot offer interpretations of standards or give views on
the application of standards to particular companies or transactions.
The faculty’s standards trackers
To double-check for current standards and recent amendments go to
the faculty’s standards trackers at: icaew.com/frfstandardstracker.
Factsheets
Topics covered by other factsheets include:
• UK Regulation for Company Accounts
• The New UK Regime
• UK Company Accounts FAQs
A complete list of factsheets can be found here:
icaew.com/frffactsheets
Factsheet comments and suggestions
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see covered by factsheets, email us at [email protected]
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