[et_pb_section admin_label=”Header – All Pages” global_module=”1221″ transparent_background=”off” background_color=”#1e73be” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″ custom_padding=”||0px|”][et_pb_row global_parent=”1221″ admin_label=”row”][et_pb_column type=”4_4″][et_pb_post_title global_parent=”1221″ admin_label=”Post Title” title=”on” meta=”off” author=”on” date=”on” categories=”on” comments=”on” featured_image=”off” featured_placement=”below” parallax_effect=”on” parallax_method=”on” text_orientation=”left” text_color=”light” text_background=”off” text_bg_color=”rgba(255,255,255,0.9)” module_bg_color=”rgba(255,255,255,0)” title_all_caps=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” title_font=”|on|||” title_font_size=”35″ custom_padding=”10px|||”]
[/et_pb_post_title][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” global_module=”1228″ fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” custom_padding=”0px||0px|” padding_mobile=”on” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″][et_pb_row global_parent=”1228″ admin_label=”Row” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” gutter_width=”3″ custom_padding=”0px||0px|” padding_mobile=”off” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” column_padding_mobile=”on”][et_pb_column type=”4_4″][et_pb_text global_parent=”1228″ admin_label=”Text” background_layout=”light” text_orientation=”left” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”]
[breadcrumb]
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off”][et_pb_row admin_label=”Row”][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]
[button link=”https://ie.frs102.com/members/premium-toolkit/” type=”big” color=”red”] Return to Main Index[/button]
[/et_pb_text][/et_pb_column][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]
[button link=”https://ie.frs102.com/members/premium-toolkit/section-1/” type=”big” color=”red”] Return to Section 1 Home[/button]
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Main Body Text” background_layout=”light” text_orientation=”justified” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”]
| Old GAAP | FRS 102
|
Further Comment on Differences |
| Specialist Activities | Specialist Activities (S.34) | |
| Agriculture
Biological assets and agricultural produce, this was not defined under old GAAP and as a result would have been dealt with under SSAP 9 where they were treated as inventory and FRS 15 where they related to fixed assets. |
Agriculture
Section 34 deals specifically with agriculture activities and defines biological assets and agricultural produce. |
|
| Given that biological assets did not have a specific standard, there is a possibility that differences will arise. These are discussed further in the sections below.
Where the cost model is adopted on transition, no transition adjustments are required. Where a fair value model is adopted (where it can be reliably measured) a transition adjustment will be required. See attached an example of the transition adjustments required where the fair value model is adopted (Example 143 – Cost Model To A Fair Value Model). Where the entity continues to apply the model it applied under old GAAP no transition adjustment will be required. Where the option to use the intangible asset model is adopted an adjustment will be required on transition. |
||
| Under SSAP 9, Biological assets and agricultural produce, would be measured at the lower of cost or net realisable value. Where biological assets were of a fixed asset nature these were held at cost less accumulated depreciation and amortisation. A fair value model was not permitted.
|
Under Section 34, entities have a choice to recognise and measure these under the fair value model (where it can be reliably measured) or the cost model. Therefore, this provides a further option than was available under old GAAP.
Where the fair value model is chosen the assets are measured initially and at each reporting date at fair value less costs to sell, with changes reported in profit. Agricultural produce is measured at the point of harvest at fair value less costs to sell, and is not subsequently re-measured. Under the cost model, the assets are measured at cost less depreciation and, where relevant, impairment (the cost model must be used if the fair value of a biological asset cannot be reliably measured). |
|
| Service Concession agreements
Service concessions can be accounted for under the financial asset model. |
Service Concession agreements
Section 34 provides a further option with regard to service concessions which did not exist under old GAAP, that being the option to use the intangible asset model. |
|
| Retirement benefit plans
Disclosure requirements detailed across were not required. |
Retirement benefit plans
In relation to retirement benefit plans financial statements, Section 34 adds supplementary disclosure requirements for defined contribution or defined benefit plans reporting under the FRS. |
|
| Other sections:
No specific standard dealing with these type of items. |
Other sections:
The other sections dealt with in Section 34 are: · Financial institutions; · Heritage assets; · Finding commitments; · Public benefit entities |
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]