Forthcoming Changes in UK GAAP

This In-house training course provides a thorough analysis of the differences between the present UK GAAP and the new Standards. It concentrates on accounting policy changes which will affect an entity’s profit and net assets in this practical and intensive in-house training programme.

Course Overview

Forthcoming changes in UK GAAP could impact upon your company’s financial and accounting policies.

This In-house training course provides a thorough analysis of the differences between the present UK GAAP and the new Standards. It concentrates on accounting policy changes which will affect an entity’s profit and net assets. It also highlights areas in which disclosures in the notes to the financial statements will change.

Find out more

Your next step is to call us now on +44 (0)20 7729 6677 or email us at info@falconbury.co.uk or use our contact form and find out how we can help. There are no commitments, and if we cannot help our advice and recommendations are free of charge.

Sample Programme

Course Outline

FRS102 was issued in draft form on 30 January 2012. FRS102 replaces most FRSs, SSAPs and UITFs and will therefore apply to entities which are neither small nor listed. Small entities will continue to be able to use the FRSSE, and listed entities must prepare their accounts using IFRS. It is estimated that the changes will affect approximately 50,000 entities.

The ASB proposed an effective date of 1 January 2015. Earlier adoption would be possible.

It is expected that the final version of FRS102 will be published in spring 2013.

FRS101 was issued in final form in November 2012 and enables subsidiaries and parent companies of listed groups to adopt IFRS in their individual financial statements but with fewer disclosures.

This course provides a thorough analysis of the differences between the present UK GAAP and the new Standards. It concentrates on accounting policy changes which will affect an entity’s profit and net assets. It also highlights areas in which disclosures in the notes to the financial statements will change.

Module 1: The current accounting framework and outline of the changes

By the end of this module, participants will be able to identify the accounting frameworks which currently apply to different sizes and types of entity. They will know how this will change in the future and will recognise the latest date by which each entity must adopt the new UK GAAP.

  • IFRS: applicability to listed entities
  • Voluntary adoption of IFRS
  • UK GAAP: the Companies Act 2006 and Accounting Standards
  • The Financial Reporting Standard for Smaller Entities (FRSSE)
  • Replacement of accounting standards with FRS102
  • Effective date and early adoption
  • Effect on small entities
  • Subsidiaries of listed entities

Module 2: Financial statements and notes

By the end of this module, participants will be familiar with the form and content of the primary statements under FRS102 and the differences from the present primary statements. They will understand the additional notes to the financial statements required by FRS102.

  • Statement of financial position
  • Statement of changes in equity
  • Statement of income and retained earnings
  • Statement of cash flows
  • Accounting policies and judgements
  • Related party disclosures

Module 3: Statement of income and retained earnings

By the end of this module, participants will understand the forthcoming changes in accounting areas which primarily affect the statement of income and retained earnings and the entity’s profit or loss for the year. They will be aware of the changed disclosures in the notes to the financial statements.

  • Revenue
  • Grants
  • Borrowing costs
  • Employee benefits
  • Share-based payments
  • Income tax including deferred tax

Module 4: Statement of financial position

By the end of this module, participants will understand the forthcoming changes in accounting areas which primarily affect the statement of financial position and the entity’s net assets. They will be aware of the changed disclosures in the notes to the financial statements.

  • Inventories
  • Property, plant and equipment
  • Investment properties
  • Intangible assets other than goodwill
  • Leases
  • Provisions and contingencies

Module 5: Financial instruments

By the end of this module, participants will grasp the effect of financial instruments under FRS102 on an entity’s profit or loss and net assets. The module will concentrate on derivative financial instruments such as forward exchange contracts, commodity options and interest rate swaps.

  • Liabilities and equity
  • Basic financial instruments
  • Other financial instruments

Module 6: Group accounting

By the end of this module, participants will understand how the principles of group accounting under FRS102 differ from those under the present UK GAAP. They will recognise the disclosures which will need to be made in the notes to the financial statements.

  • Consolidated and separate financial statements
  • Business combinations and goodwill
  • Investments in associates and joint ventures
  • Foreign currency translation

Module 7: Simplified IFRS for group companies

By the end of this module, participants will be able to identify those entities which may benefit under FRS101 from adopting IFRS with a reduced disclosure framework. They will understand how this may simplify the preparation of consolidated financial statements, as it may eliminate accounting policy differences between individual group entities.

  • Entities which may adopt FRS101
  • Reduced disclosure framework
  • Special rules for financial institutions

Target audience

The companies affected by the changes are private companies which are not defined as small under company law. A small company is one which falls below two of the following three criteria in two successive years: turnover £6.5 million; gross assets £3.26 million; average number of employees 50. It is estimated that there are approximately 50,000 companies which exceed at least two of these criteria and will therefore be affected by FRS102.

The key officers in these companies will be the finance director, the financial controller and the company accountant.

Recommended Trainer

Peter Hughes, M.A. (Oxon), A.C.A., is a Chartered Accountant. Having qualified in a vibrant Liverpool City Centre practice, he worked for a time in property management before setting up his own consultancy in 2003, based initially in Birkenhead and then, since 2008, in York. He writes and presents seminars on taxation and other subjects including International Financial Reporting Standards, Company Law and Employment Law, and he advises private clients in these matters. He has a wide experience of advising small and medium-sized businesses on the tax implications of their business decisions.