New UK GAAP – Get ready with ACCA
The new UK GAAP framework has been ushered by the publication by the Financial Reporting Council of three Financial Reporting Standards that replace virtually all the extant standards and UITF Abstracts, with the exception of the FRSSE and FRS 27 (Life Assurance).
FRS 100 Application of Financial Reporting Requirements – it establishes what the applicable financial reporting standards for different entities are.
FRS 101 Reduced Disclosures Framework – which allows certain qualifying group entities to apply a number of disclosure exemptions when preparing individual accounts under EU-adopted IFRS
FRS 102 The Financial Reporting Standard Applicable in the UK and the Republic of Ireland – the single financial reporting standard, based on the IFRS for SMEs, that replaces the existing standards and abstracts.
The new standards will be applicable for accounting periods beginning on or after 1 January 2015, with the current standards and abstracts being withdrawn from the same date.
FRS 100 also includes consequential amendments applicable to the current version of the FRSSE which will become effective from January 2015.
Although the new UK GAAP framework is mandatory from 2015, early adoption is allowed and accountants should start gaining an understanding of the changes involved in the transition and of how they will affect their clients and organisations.
In order to support members in preparing for the switch to the new financial reporting framework, ACCA will provide a number of tools using different media that will be delivered throughout 2013.
In particular articles and guidance that outline the main differences with current GAAP, first time adoption and transitional arrangements will be published in the ACCA e-newsletters (an article is included in this issue of In Practice), the A&B magazine (two CPD articles have been published in the May Issue and accessible here and ACCA's Technical Advisory financial reporting website.
A more detailed comparison of topical areas between the current and the new UK GAAP framework, including analysis of the potential tax impact of the new accounting requirements, the adoption timeframe and first-time adjustments and options available to different entities will be delivered via Technical Factsheets, which are aimed at members, and ACCA UK Guides To…, which are designed to be passed to clients to inform them about key issues and can be personalised by adding your firm’s logo and details.
ACCA will also publish a video podcast on topical issues relating to the implementation of the new UK GAAP framework that will be available by the end of September 2013 and will be accessible ACCA Podcasts.
Additionally ACCA will publish individual model accounts for a small company voluntarily applying FRS 102 and model accounts for a company applying the FRSSE 2015, so that it could be easy to draw a comparison between the implications of the two accounting standards in terms of recognition and disclosures for specific items. The model accounts will only be available to members and will be ready by the end of September 2013. These are likely to follow the same format as the current model accounts. The current range includes FRSSE accounts, LLP accounts, abbreviated accounts, dormant accounts and sole trader accounts, which can be requested via email quoting your name and membership number.
ACCA UK also provides high quality, relevant and cost effective courses that cover the new UK GAAP framework. The courses provided by ACCA UK contribute to your annual CPD requirements and a directory of available courses can be accessed here.