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[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built=”1″ 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″ custom_padding_tablet=”0px||0px|” custom_padding_last_edited=”on|desktop” prev_background_color=”#1e73be” next_background_color=”#000000″][et_pb_row][et_pb_column type=”4_4″][et_pb_toggle admin_label=”Index” _builder_version=”3.0.105″ title=”Section 1A – Index” open=”off”]
1A.1.1 Extract from FRS102: Section 1A.1-1A.4
1A.2.1 Section 1A – As applicable to the republic of Ireland
1A.2.1.2 Which companies can avail of Section 1A/Small Company’s regime?
1A.2.1.3 What remains the same?
1A.2.2 Section 1A and UK Companies
1A2.3 Choice to apply section 1A of FRS 102
1A.3.1 Extract from FRS102: Section 1A.5-.1A.6
1A.3.2 OmniPro comment – True and fair view
1A.4 Complete set of financial statements of a small entity
1A.4.1 Extract from FRS102: Section 1A.7-1A.11, Section 1AD.1 and Section 1A.16-1A.20
1A.4.2.1 What Section 1 means in practical terms?
1A.4.2.2 The minimum disclosure requirements and the requirements to still show a true and fair view
1A.4.2.3 Disclosure encouraged under S.1A
1A.4.2.4 Formats of Balance Sheet and profit and Loss Account
1A5 Information to be presented in the statement of financial position
1A5.1 Extract from FRS102: Section 1A.12-1A.13
1A6 Information to be presented in the income statement
1A6.1 Extract from FRS102: Section 1A.14-1A.15
1A7 Voluntary preparation of consolidated financial statements
1A7.1 Extract from FRS102: Section 1A.21-1A.22
1A8.1.1 Guidance on adapting the balance sheet formats
1A8.1.1.1 Extract from FRS102: Section 1AA.1
1A8.1.1.2.2 Required formats for entities
1A8.1.1.2.2.2 Format 1 – Balance sheet – set out in legislation – Schedule 3A
1A8.1.1.2.2.3: Format 2 – balance sheet – set out in legislation – Schedule 3A
1A8.1.1.2.2.4 Example – Format 1 – Balance sheet – practical application
1A8.1.1.2.2.5 Notes required to balance sheet
1A8.2.1 Abridged balance sheet
1A8.2.1.1 Extract from FRS102: Section 1AA.2
1A8.3.1.1 Extract from FRS102: Section 1AA.3-1AA.6
1A8.3.1.2.2 Example adapted/IFRS layout – Balance sheet
1A9.1.1 Guidance on adapting the profit and loss account formats
1A9.1.1.1 Extract from FRS102: Section 1AB.1
1A9.1.1.2.2 Application of format 1 profit and loss account set out in legislation
1A9.1.1.2.3 Application of format 2 – profit and loss account set out in legislation
1A9.1.1.2.4 Example format 1 – profit and loss account.
1A9.1.1.2.5 Notes required to profit and loss account at a minimum
1A9.9.1.2.5.1 Consolidated profit and loss note requirements
1A9.2 Abridged Profit and Loss Account
1A9.2.1 Extract from FRS102: Section 1AB.2
1A9.3 Adapted Profit and Loss Account
1A9.3.1 Extract from FRS102: Section 1AB.3-1AB.4
1A9.3.2.2: Example adapted/IFRS layout on the profit and loss accounts
1AC10 Appendix C to Section 1A (Applicable for UK entities)
1AC10.1 Disclosure requirements for small entities
1AC10.1.1 Extract from FRS102: Section 1AC.1-1AC.2
1A10.1.2.2 What entities must comply with Appendix C
1AC10.2.1 Extract from FRS102: Section 1AC.3-1AC.
1AC10.2.2.1.1 Accounting police disclosure
1AC10.2.2.1.1.2 Basis of preparation
1AC10.2.2.1.1.4 Basis of consolidation (if applicable)
1AC10.2.2.1.4.1 Subsidiary undertakings
1AC10.2.2.1.1.4.2 Associates and joint ventures
1AC10.2.2.1.1.5 Business combinations and goodwill [if applicable]
1AC10.2.2.1.1.8 Intangible assets
1AC10.2.2.1.1.9 Contingent acquisition consideration
1AC10.2.2.1.1.10 Financial assets
1AC10.2.2.1.1.11 General turnover accounting policy notes
1AC10.2.2.1.1.11.2 Turnover accounting policy for an insurance broker Turnover – commission income
1AC10.2.2.1.1.11.4 Turnover accounting policy note where turnover is derived from investments
1AC.10.2.2.1.1.11.5 Turnover accounting policy for a software
1AC10.2.2.1.1.11.6 Turnover accounting policy for a construction company
1AC10.2.2.1.1.12 Government grants
1AC10.2.2.1.1.12.1 Accruals model
1AC10.2.2.1.1.12.2 Performance model
1AC10.2.2.1.1.13 Dividend income
1AC10.2.2.1.1.14 Dividend distribution
1AC10.2.2.1.1.16 Financial instruments
1AC10.2.2.1.1.16.1 Trade and other debtors
1AC10.2.2.1.1.16.2 Cash and cash equivalents.
1AC10.2.2.1.1.16.3 Other financial assets.
1AC10.2.2.1.1.16.4 Trade and other creditors.
1AC10.2.2.1.1.16.7 Offsetting financial instruments.
1AC10.2.2.1.1.17 Compound financial instruments.
1AC10.2.2.1.1.19 Hedge accounting
1AC10.2.2.1.1.20.1 Environmental liabilities
1AC10.2.2.1.1.20.2 Closure costs
1AC10.2.2.1.1.21 Contingencies
1AC10.2.2.1.1.22 Employee Benefits
1AC10.2.2.1.1.23 Preference share capital
1AC10.2.2.1.1.24 Share capital
1AC10.2.2.1.1.25 Related party transactions
1AC10.2.2.1.1.26 Interest income
1AC10.2.2.1.1.28 Tangible fixed assets
1AC10.2.2.1.1.30 Investment properties
1AC10.2.2.1.1.31.1 Finance leases
1AC10.2.2.1.1.31.2 Operating leases
1AC10.2.2.1.1.31.3 Lease incentives
1AC10.2.2.1.1.32 Leasing company accounting policy
1AC10.2.2.1.1.33 Intangible assets
1AC10.2.2.1.1.35 Exceptional items
1AC10.2.2.1.1.36 Share based costs
1AC10.2.2.1.1.37 Investment properties
1AC10.2.2.1.1.38 Biological assets (where fair value is used)
1AC10.2.2.1.1.39 Biological assets – Livestock (where fair value model is adopted)
1AC10.2.2.1.1.40 Biological assets – Forestry (where cost model is adopted)
1AC10.2.2.1.1.41 Biological assets – Livestock (where cost model is adopted)
1AC10.3 Changes in presentation and accounting policies and corrections of prior period errors
1AC10.3.1 Extract from FRS102: Section 1AC.7-1AC.9
1AC10.3.2.2. Prior period adjustment disclosure
1AC10.3.2.2.1 Option 1 – Analysis of prior period adjustments
1AC10.3.2.2.2 Option 2: Analysis of prior period adjustments
1AC10.3.2.2.2.3 Profit and Loss reserves note/statement of changes in equity
1AC10.3.2.2.3 Statement in changes in equity note – prior period error/change in accounting policy
1AC10.3.2.2.4 Illustration of change in accounting policy disclosure
1AC10.3.2.2.4.1 Example extract of a change in accounting policy disclosure
1AD11.3.2.5 Change in classification from prior period
1AC10.4 True and fair override
1AC10.4.1 Extract from FRS102: Section 1AC.10
1AC10.5 Notes supporting the statement of financial position
1AC10.5.1 Extract from FRS102: Section 1AC.11-1AC.19
1AC10.5.2.1 Property, plant and equipment/tangible fixed assets. Including revaluation
1AC 10.5.2.1.1 Borrowing costs
1AC10.5.2.2 Intangible assets including revaulation
1AC10.5.2.4 Illustration of the revaluation reserve disclosures.
1AC10.5.2.5 Investment properties note
1AC10.5.2.6 Alternative layout for the investments note and illustration of financial assets
1AC10.6 Details of indebtness and securities held (if any) 91
1AC10.6.2 Extract from FRS 102: Section 1AC.27
1AC10.7.1 Extract from FRS102: Section 1AC.20-1AC.21
1AC10.8 Fair value measurement
1AC10.8.1 Extract from FRS102: Section 1AC.22-Section 1AC.24 and section 1AC.26
1AC10.8.2.2 Extract from the notes to the financial statements – note on investment property
1AC10.8.2.3 Investment note with investment in subsidiary, joint ventures and other investments
1AC10.8.2.4 Extract of notes to the financial statements – Financial instruments note disclosures
1AC10.8.2.4.1 Extract of notes to the financial statements – Interest receivable and similar income
1AC 8.2.4.2 Extract of notes to the financial statements – interest payable and similar expenses
1AC10.8.2.4.3 Alternative disclosure for profit and loss
1AC10.8.2.4.4 Extract from other comprehensive income showing activity on cash flow hedges:
1AC10.8.2.4.4.1 Cash flow fair value hedge reserve disclosure requirements:
1AC10.9 Indebtedness, guarantees and financial commitments
1AC10.9.1 Extract from FRS102: Section 1AC.27-1AC.31
1AC10.9.2.2 Contingencies note
1AC10.9.2.3 Off-balance sheet arrangements note (section 1AC.31 od Appendix C of FRS 102)
1AC10.9.2.4 Commitments notes (section 1AC.31 of Appendix C of FRS 102)
1AC10.9.2.5 Indebtness note and security disclosures
1AC10.10 Notes supporting the income statement / profit and loss accounts
1AC10.10.1 Extract from FRS102: Section 1AC.32-1AC.33
1AC10.10.2.2 Extract to show required profit and loss disclosures
1AC10.10.2.2.1 Exceptional item defined and the disclosure requirements
1AC10.10.2.2.2 Exceptional item disclosure
1AC10.10.2.3 Employee numbers disclosure:
1AC10.10.2.4 Other profit and loss disclosures
1AC10.11 Related party disclosures
1AC10.11.1 Extract from FRS102: Section 1AC.34-1AC.36
1AC10.11.2.1.1 Related party defined
1AC10.11.2.2 Related party note – with related entities
1AC10.11.2.3 Loans, guarantees, credit transactions entered into the benefit of directors
1AC10.11.2.4 Directors remuneration
1AC10.11.7 Controlling Party disclosure
1AC10.12.1 Extract from FRS102: Section 1AC.37-1AC.39
1AC10.12.2.1 Disclosures required describing the entity
1AC10.12.2.2 Post balance sheet events
1AC10.13.1 Auditors remuneration, Interest income or expense from loans to and from group entities
1AC10.13.1.1 Interest income or expense from loans to and from group entities
1AC10.13.1.2 Auditors remuneration
1AC10.13.2 Debtors and Creditors Note as required by Formats
1AC10.13.3 Share capital disclosures
1AD11 Appendix D to Section 1A (applicable for Republic of Ireland entities only)
1AD11.1 Disclosure requirements for small entities in the Republic of Ireland
1AD11.1.1 Extract from FRS102: Section 1AD.1-1AD.2
1A11.1.2.1 Summary section 1A disclosure checklist
1AD11.2.1 Extract from FRS102: Section 1AD.3-1AD.6
1AD11.2.2.1.1 General information
1AD11.2.2.1.2 Basis of preparation
1AD11.2.2.1.3 Consolidation exemption
1AD11.2.2.1.4 Basis of consolidation – (If Applicable)
1AD11.2.2.1.4.1 Subsidiary undertakings
1AD11.2.2.1.4.2 Associates and joint ventures
1AD11.2.2.1.4.3 Transactions eliminated on consolidation
1AD11.2.2.1.5 Business combinations and goodwill
1AD11.2.2.1.8 Intangible assets
1AD11.2.2.1.9 Contingent acquisition consideration
1AD11.2.2.1.10 Financial assets
1AD11.2.2.1.11.1 General turnover accounting policy notes
1AD11.2.2.11.2 Turnover accounting policy for an insurance broker
1AD11.2.2.11.4 Turnover accounting policy note where turnover is derived from investments Turnover
1AD11.2.2.11.5 Turnover accounting policy for a software company
1AD11.2.2.11.6 Turnover accounting policy for a construction company
1AD11.2.2.12 Government grants
1AD11.2.2.12.2 Performance model
1AD11.2.2.14 Dividend distribution
1AD11.2.2.16 Financial instruments
1AD11.2.2.16.1 Trade and other debtors
1AD11.2.2.16.2 Cash and cash equivalents.
1AD11.2.2.16.3 Other financial assets.
1AD11.2.2.16.4 Trade and other creditors.
1AD11.2.2.16.7 Offsetting financial instruments.
1AD11.2.2.17 Compound financial instruments.
1AD11.2.2.20.1 Environmental liabilities
1AD11.2.2.22 Employee Benefits
1AD11.2.2.23 Preference share capital
1AD11.2.2.25 Related party transactions
1AD11.2.2.28 Tangible fixed assets
1AD11.2.2.30 Investment properties
1AC10.2.2.1.1.31.1 Finance leases
1AD11.2.2.31.2 Operating leases
1AD11.2.2.31.3 Lease incentives
1AC10.2.2.1.1.32 Leasing company accounting policy
1AD11.2.2.33 Intangible assets
1AD11.2.2.35 Exceptional items
1AD11.2.2.36 Share based costs
1AD11.2.2.37 Investment properties
1AD11.2.2.38 Biological assets (where fair value is used)
1AD11.2.2.39 Biological assets – Livestock (where fair value model is adopted)
1AD11.2.2.40 Biological assets – Forestry (where cost model is adopted)
1AD11.2.2.41 Biological assets – Livestock (where cost model is adopted)
1AD11.2.2.1.42 Prior period adjustment – Change in accounting policy
1AD11.2.2.43 Change in accounting estimate
1AD11.3 Changes in presentation and accounting policies and corrections of prior period errors
1AD11.3.2 Extract from Section 1AD.8 to 1AD.10 of S1A of FRS 102
1AD11.3.2.2 Prior year adjustment disclosure
1AD11.3.2.2.1 Option 1: Analysis of prior year adjustments
1AD11.3.2.2.2 Option 2 – Analysis of prior year adjustments
AD11.3.2.2.3 Movement in profit and loss reserves note or statement of changes in equity
1AD11.3.2.4 Example extract of a change in accounting policy disclosure
1AD11.3.2.5 Change in classification from prior period
1AD11.4 True and fair view override
1AD11.4.1 Extracts from FRS 102: Section 1AD.11
1AD11.5 Notes to the statement of financial position – fixed assets
1AD11.5.1 Extract from FRS 102: Section 1AD.13 – 1AD.18
1AD11.5.2.1.3 Intangible assets
1AD11.5.2.1.5 Example disclosure for a revaluation reserve
1AD11.5.2.1.6 Investment properties
1AD11.5.2.1.7 Financial assets note
1AD11.6.1 Extracts from FRS 102: Section 1AD.20 – 1AD.21
1AD11.7 Borrowing/creditors details
1AD11.7.1 Extracts from FRS 102: Sction 1AD.26 – 1AD.28
1AD11.8 Appropriation of profit or loss/profit and loss reserve movements
1AD11.8.1 Extract from FRS 102: Section 1AD.35
1AD11.9 Fair value measurement
1AD11.9.1 Extract from FRS 102; Section 1AC.22 to 1AC.25
1AD11.9.2.1 Analysis – fair value disclosure requirements
1AD11.9.2.2 Extract from the notes to the financial statements
1AD11.9.2.2.1 Investment property
1AD11.9.2.2.3 Financial instrument note disclosures
1AD11.9.2.2.4 Fair value reserve disclosures
1AD11.10 Notes to the income statements/profit and loss account
1AD11.10.1 Extract from FRS 102: Sections 1AD.36 to 1AD .37
1AD11.10.2.2 Extract to show required profit and loss disclosures
1AD11.10.2.2.1 Exceptional item defined and the disclosure requirements
1AD11.10.2.2.1.1 Exceptional item disclosure
1AD11.10.2.2.2 Employee note disclosure
1AD11.10.2.2.3 other profit and loss disclosures
1AD11.11 Related party disclosures – director’s remuneration
1AD11.11.1 Extract from FRS 102: sections 1AD.38 to 1AD.40
1AD11.11.2.1 Related parties defined
1AD11.11.2.1.1 Connected person defined
1AD11.11.2.2 Directors remuneration disclosure
1AD11.11.2.2.1 Make up of director’s remuneration
1AD11.12.1 Extracts from FRS 102: 1AD.41 to 1AD.47
1AD11.12.2.1.1 Application to non-companies
1AD11.12.2.1.2 Get out from disclosure if below a specified value.
1AD11.12.2.2 Disclosures of loans and guarantees for the benefit of directors.
1AD11.13 Related party transactions material transactions with directors
1AD11.13.1 Extracts from FRS 102: Secton 1AD.48
1AD11.13.2.2 Is there exemptions from the disclosure?
1AD11.14 Other related party transactions (other than transactions with director)
1AD11.14.1 Extracts from FRS 102: Section 1AD.51
1AD11.15 Ultimate controlling party
1AD11.15.1 Extract from FRS 102: Section 1A.50
1AD11.16 Post balance sheet events
1AD11.16.1 Extracts from FRS 102: Sections 1A.54
1AD.11.17 Guarantees, financial commitments and contingencies
1AD.11.17.1 Extract from FRS 102: Sections 1AD.28 to 1AD.34
1AD11.17.2.2 Contingencies (1AD.31 and 1AD.34 of Appendix D of FRS 102)
1AD11.18 Holding of own shares
1AD11.18.1 Extract form FRS 102; Section 1AD.49
1AD11.19.1 Extract from FRS 102; Sections 1AD.52 – 1AD.53 and 1AD.55
1AD11.19.2.1 Disclosing legal form, registered office, basis of preparation
1AD11.20 Other items required by the formats under Companies Act
1AD11.20.4 Creditors: amounts falling due within one-year note
1AD11.20.5 Creditors: Amounts falling due after more than one-year note
1AD11.20.6 provision for liabilities
1AE.13.1 Additional disclosures encouraged for small entities
1AE.13.1.1 Extract from FRS102: Section 1AE.1
1AE.13.1.2.2 Statement of compliance
1AE.13.1.2.3.1 Transition note adjustments example
1A11.2.2.1 Transition to FRS 102 – first time exemption – Section 1A
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1A.8 Appendix A to Section 1A
1A8.1.1 Guidance on adapting the balance sheet formats
1A8.1.1.1 Extract from FRS102: Section 1AA.1
This appendix is an integral part of the Standard.
1AA.1 As set out in paragraph 1A.12 a small entity shall present a statement of financial position in accordance with the requirements for a balance sheet set out in either Part 1 General Rules and Formats of Schedule 1 to the Small Companies Regulations or Part 1 General Rules and Formats of Schedule 1 to the Small LLP Regulations. This results in three alternatives:
(a) apply the required balance sheet formats as set out in legislation (subject to any permitted flexibility);
(b) draw up an abridged balance sheet (see paragraph 1AA.2) ; or
(c) adapt one of the balance sheet formats (see paragraphs 1AA.3 to 1AA.6).
1A8.1.1.2 OmniPro comment
1A8.1.1.2.1 Overview
As per section 1AA.1 of FRS 102. For ROI entities that are preparing an entity set of financial statements the entity should use either format 1 or format 2 in Schedule 3A of Companies Act 2014. Note although there are references to companies act here even if the entity is not a company, the disclosures continues to apply as long as that entity meets the conditions for the small companies regime if it were a company.
In relation to Section 1AA.1(b) of FRS 102, the ROI legislation does not give the option to prepare an abridged balance sheet as the only set of financial statements. ROI entities must apply the formats in Schedule 3A of Companies Act 2014 for entity financial statements and the layout in; and Schedule 4A for consolidated financial statements. See further details at 1A8.1.1.2.2
Note the formats can be adapted for a specific entity purposes as long as it meets the special nature of the entitys business. Therefore, charities for example can lay it out in line with an income and expenditure account/statement of financial activities or balance sheet for example. It can also be laid out in accordance with IFRS/the adapted format as permitted by section 1AA.1 of FRS 102
1A8.1.1.2.2 Required formats for entities
1A8.1.1.2.2.1 Overview
See below the format and requirements for format 1 and 2 as detailed in Schedule 3A of Companies Act 2014. Under this method all of the below are included on the face of the balance sheet or alternatively further detail is included in the notes. In the example that follows we have shown the letters and roman numerals on the face of the balance sheet and shown the split in the notes where required. You will note there are no notes included for certain items as they are not required under the small company’s regime. Example of disclosure notes have been included in Appendix C (for UK entities) & Appendix D (for Republic of Ireland) of section 1A of FRS 102.
1A8.1.1.2.2.2 Format 1 – Balance sheet – set out in legislation – Schedule 3A
Format 1
A. Fixed Assets.
i. Intangible assets
1. Development costs
2. Concessions, patents, licences, trademarks and similar rights and assets
3. Goodwill
4. Payments on account
ii. Tangible assets
1. Investment property
2. Land and buildings
3. Plant and machinery
4. Fixtures, fittings, tools and equipment
5. Payments on account and assets in course of construction
iii. Financial assets
1. Shares in group undertakings
2. Loans to group undertakings
3. Participating interests
4. Loans to undertakings with which the company is linked by virtue of participating interests
5. Other investments other than loans
6. Other loans
B. Current Assets
i. Stocks
1.. Raw materials and consumables
2.. Work in progress
3.. Finished goods and goods for resale
4.. Payments on account
ii. Debtors
1.. Trade debtors
2.. Amounts owed by group undertakings
3.. Amounts owed by undertakings with which the company is linked by virtue of participating interests
4.. Other debtors
5.. Called up share capital not paid
6.. Prepayments
7. Accrued income
iii. Investments
1.. Shares in group undertakings
2.. Other investments
iv. Cash at bank and in hand
C. Creditors: Amounts falling due within one year
1. Debenture loans
2. Amounts owed to credit institutions
3. Called up share capital presented as a liability
4. Payments received on account
5. Trade creditors
6. Bills of exchange payable
7. Amounts owed to group undertakings
8. Amounts owed to undertakings with which the company is linked by virtue of participating interests
9. Other creditors including tax and social insurance
10. Accruals
11. Deferred income
D. Net current assets (liabilities)
E. Total assets less current liabilities
F. Creditors: Amounts falling due after more than one year
1. Debenture loans
2. Amounts owed to credit institutions
3. Called up share capital presented as a liability
4. Payments received on account
5. Trade creditors
6. Bills of exchange payable
7. Amounts owed to group undertakings
8. Amounts owed to undertakings with which the company is linked by virtue of participating interests
9. Other creditors including tax and social insurance
10. Accruals
11. Deferred income
G. Provisions for liabilities
1. Retirement benefit and similar obligations
2. Taxation, including deferred taxation
3. Other provisions for liabilities
H. Capital and reserves
i. Called up share capital presented as equity
ii. Share premium account
iii. Revaluation reserve
iv. Other reserves
1. Other undenominated capital
2. Reserve for own shares held
3. Reserves provided for by the constitution
4. Other reserves including the fair value reserve (specified as necessary)
v. Profit or loss brought forward
vi. Profit or loss for the financial year
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1A8.1.1.2.2.3: Format 2 – balance sheet – set out in legislation – Schedule 3A
Format 2
ASSETS
A. Fixed Assets I. Intangible assets
1. Development costs
2. Concessions, patents, licences, trademarks and similar rights and assets
3. Goodwill
4. Payments on account
II. Tangible assets
1. Investment property
2. Land and buildings
3. Plant and machinery
4. Fixtures, fittings, tools and equipment
5. Payments on account and assets in course of construction
III. Financial assets
1. Shares in group undertakings
2. Loans to group undertakings
3. Participating interests
4. Loans to undertakings with which the company is linked by virtue of participating interests
5. Other investments other than loans
6. Other loans
B. Current Assets
I. Stocks
1. Raw materials and consumables
2. Work in progress
3. Finished goods and goods for resale
4. Payments on account
II. Debtors (3)
1. Trade debtors
2. Amounts owed by group undertakings
3. Amounts owed by undertakings with which the company is linked by virtue of participating interests
4. Other debtors
5. Called up share capital not paid
6. Prepayments
7. Accrued income
III. Investments
1. Shares in group undertakings
2. Other investments
IV. Cash at bank and in hand
A. Capital and reserves
I. Called-up share capital presented as equity
II. Share premium account
III. Revaluation reserve
IV. Other reserves
1. Other undenominated capital
2. Reserve for own shares held
3. Reserves provided for by the constitution
4. Other reserves including the fair value reserve (specify as necessary)
V. Profit or loss brought forward
VI. Profit or loss for the financial year
B. Provisions for liabilities
1. Retirement benefit and similar obligations
2. Taxation, including deferred taxation
3. Other provisions for liabilities
C. Creditors
1. Debenture loans
2. Amounts owed to credit institutions
3. Called-up share capital presented as a liability
4. Payments received on account
5. Trade creditors
6. Bills of exchange payable
7. Amounts owed to group undertakings
8. Amounts owed to undertakings with which the company is linked by virtue of participating interests
9. Other creditors including tax and social insurance
10. Accruals
11. Deferred income
1A8.1.1.2.2.4 Example – Format 1 – Balance sheet – practical application
See example of format 1 below showing the application of the above. A note is required for each item in the balance sheet showing the items required in Format 1.
Under this method all of the below are included on the face of the balance sheet or alternatively further detail is included in the notes. In the example that follows the below analysis we have shown the letters and roman numerals on the face of the balance sheet and shown the split in the notes where required. You will note there are no notes included for certain items as they are not required under the small companies regime. Example of disclosure notes have been included in Appendix C for UK entities and Appendix D for Republic of Ireland entities. Note the above formats relate to ROI layouts.
(Notes: BELOW WOULD REQUIRE THE DEBTORS TO BE SPLIT BETWEEN TRADE DEBTORS, AMOUNTS OWED BY GROUP UNDERTAKINGS AND UNDERTAKINGS IN WHICH THE COMPANY HAS A PARTICIPATING INTEREST AND OTHER DEBTORS).
Extract from the Balance Sheet – Format 1 At 31 December 201X
| Notes |
2015 CU |
2014 CU |
|||||
| Fixed assets | |||||||
| Tangible assets | 1 | XXXX | XXXX | ||||
| Intangible assets | 2 | XXXX | XXXX | ||||
| Financial assets | 3 | XXXX | XXXX | ||||
| XXXX | XXXXX | ||||||
| Current assets | |||||||
| Stocks | 4 | XXXXX | XXXXX | ||||
| Debtors | 5 | XXXXX | XXXXX | ||||
| Investments | 6 | XXXX | XXXXX | ||||
| Cash at bank and in hand | XXXXX | XXXXX | |||||
| XXXXX | XXXXX | ||||||
|
Creditors – amounts falling due within one year |
7 |
(XXXXX) |
(XXXXX) |
||||
|
Net current assets |
XXXXX |
XXXXX |
|||||
| Total assets less current liabilities | XXXXX | XXXXX | |||||
|
Creditors – amounts falling due after more than one year |
8 |
(XXXX) |
(XXXX) |
||||
| Provisions for liabilities | |||||||
| Capital grants | (XXXX) | (XXXX) | |||||
| Deferred taxation | (XXXX) | (XXXX) | |||||
| Net assets excluding pension liability | XXXXX | XXXXX | |||||
| Defined benefit pension liability | (XXXXX) | (XXXXX) | |||||
| Net assets including pension liability |
XXXXXX
|
XXXXXX | |||||
| Capital and reserves | |||||||
| Called up share capital presented as equity | XXXXX | XXXXX | |||||
| Share premium account | XXXXX | XXXXX | |||||
| Capital redemption reserve | XXXXX | XXXXX | |||||
| Revaluation reserve | 9 | XXXXX | XXXXX | ||||
| Cash flow hedge reserve | 10 | XXXXX | XXXXX | ||||
| Other reserve | 11 | XXXXX | XXXXX | ||||
| Profit and loss account | 12 | XXXXX | XXXXX | ||||
| Shareholders’ funds | XXXXX | XXXXX | |||||
The below disclosure should be included at the bottom of the balance sheet as required by section 324 of Companies Act 2014 and section 1A.6A of FRS 102:
These financial statements have been prepared in accordance with the provisions applicable to company’s subject to the small companies regime and in accordance with Financial Reporting Statement 102 ‘The Financial Statement Reporting Standard applicable in the UK and Republic of Ireland’. The financial statements were approved by the Board of Directors on (Insert date) and authorised for issue on (insert date). They were signed on its behalf by
Mr A Director[1] Ms B Director
Director Director
DATE:
1A8.1.1.2.2.5 Notes required to balance sheet
The notes to be included in the financial statements to support the balance sheet as stated in Appendix C of section 1A of FRS 102 for UK entities and Appendix D of section 1A of FRS 102 for Republic of Ireland entities.
- Accounting policies (the same as full FRS 102) including the basis of
- Registered office address, number, status e. limited public or private company limited by shares or guarantee, and disclosure if it is being wound up where appropriate
- Details of true and fair overrides invoked
- Details of prior period adjustments as a result of prior period errors or changes in accounting policies or classifications from the prior year (disclosed on the face of the profit and loss where considered material). For ROI entities a prior year adjustment due to a change of accounting policies must be shown in the accounting policy section (Section 322 of Companies Act 2014)
- Tangible fixed assets detailing movements, depreciation, impairments, transfers including details of revaluations where applicable specifying the basis of the revaluation, the year it was performed, and the qualification of the persons that valued it (note name and qualification of valuer is not required for ROI entities under company law however S1A requires this). Provide historical cost profit note. No requirement to show the movements on the comparatives.
- Intangibles and goodwill detailing movements, amortisation, impairments, and details of useful economic life (stating if a default rate was used) No requirements to show the movements on comparatives
- Investment in subsidiaries, associates and joint ventures in individual financial statements detailing additions, impairments, Where revaluations (where fair value through OCI used) performed state the basis of the valuation, the year it was performed, and the qualification of the persons that valued it and the assumptions utilised.
- Any restrictions placed on assets
- Investment property detailing movements, fair value movement, transfers including details specifying the basis of the valuation, the year it was performed, and the qualification of the persons that valued it. Disclosure of valuation method.
- Investment in other financial assets carried at cost (i.e. investments of less than 20% which cannot be valued reliably)
- Heritage assets detailing movements, amortisation, impairments etc
- Disclosure of NBV of fixed assets revalued detailing the historical cost and NBV for both periods (for intangibles and tangible fixed assets)
- Amounts of borrowing costs capitalised in an asset where a policy of capitalisaton is applied
- Fair value movements posted to the profit and loss
- Show impairment separately from cost (applicable for ROI entities).
- Treatment for taxation purposes of amounts posted to the revaluation reserve
- Intangible assets detailing movements, amortisation, impairments
- Financial instruments and other assets measured at fair value detailing the terms and conditions that may affect timing, the extent and nature of the instrument and timing of cashflows etc. – e.g. investments which have less than a significant influence, forward contracts, interest rate swaps etc. Detail significant assumptions underlying valuation models and
- Cash flow hedge/fair value hedge reserve detailing amounts at the beginning and end of the period and the taxation effect of the postings (movement into and out of the reserve in the period)
- Financial commitments, guarantees and contingencies
- Advance, credits and guarantees to directors including the amount, conditions, amounts written off, waived and repaid, % of loan to net assets
- Related party transactions with entities here significant influence is held or more than this and with directors which have not been concluded under normal market conditions (other than those with 100% companies within the group) in addition to director’s remuneration and material transactions with directors.
- Disclosure of holding of own shares or shares in holding company (applicable to ROI entities only)
- Movement on profit and loss reserves note for current and previous years (applicable to ROI entities only)
- Disclosure above signature of directors stating they show a true and fair view
- Disclosure of prior period errors or a change in presentation from prior years
- Disclosure on acquisition of own shares (applicable to ROI entities only)
- Details of change in accounting estimate
- Details of indebtness disclosing the amounts which are repayable after 5 years of period end and amount in total included in creditors where security is held detailing the type and nature of security as well as disclosure of amounts repayable by installments.
- Directors remuneration disclosure (section 305 to 306) including payments to third parties for director’s services. (Section 1AD.38 to 1AD.40 of S1A of FRS 102) The UK disclosures are not as specific or clear. See Appendix C of S1A at 1AC10.11.2.6 for further details.
- Transactions with directors and connected persons (sections 309 of Companies Act 2014 and sections 1AD.41 to 1AD.48 of S1A of FRS 102)
- Name and registered office of the undertaking drawing up the lowest level of consolidated financial statements in which the entity is included if applicable including the place of business
- Disclosure of exceptional items in line with Section 5 (See section 5 for further details).
- Identity of ultimate controlling party inc. registered office and where consolidated financial statements can be obtained if
- Loans, guarantee, credit transactions entered into for the benefit of directors and their connected persons to include the movement on these during the period and the percent of net assets.
- Off balance sheet arrangements
- Post balance sheet events (Section 32 disclosures)
- Accrual for pension liabilities (ROI only)
- Impairment of all types of fixed assets or any reversals
- Disclosure of useful life of development expenditure capatalised
- Average number of employees employed during the year
- Disclosure of a change in estimate – reason for same and the impact (applicable to ROI only)
- Disclosure on group interest income earned or charged
- Auditors remuneration for audit of company only (UK only)
- Statement/detailing the fact that the small companies regime has been applied to be included onto the foot of the balance sheet (section 1A6.A of FRS 102).
1A8.2.1 Abridged balance sheet
1A8.2.1.1 Extract from FRS102: Section 1AA.2
1AA.2 A small entity choosing to apply paragraph 1A(1) of Schedule 1 to the Small Companies Regulations and draw up an abridged balance sheet must still meet the requirement for the financial statements to give a true and fair view. A small entity shall therefore also consider the requirements of paragraph 1A.16, and provide any additional disclosure that is necessary in the notes to the financial statements, for example in relation to disaggregating the information in the balance sheet.
1A8.2.1.2 OmniPro comment
The ROI legislation does not give the option nor does section 1AA.16 of FRS 102 given the option to prepare an abridged balance sheet as the only set of financial statements. ROI entities must apply the guidance in Schedule 3A of Companies Act 2014 hence the above guidance is not applicable. See further details for UK entities in the UK section of the website.
[1] Where there is only 1 director as a new model private LTD that director may approve the financial statements
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1A8.3.1 Adapted balance sheet
1A8.3.1.1 Extract from FRS102: Section 1AA.3-1AA.6
1AA.3 A small entity choosing to apply paragraph 1B(1) of Schedule 1 to the Small Companies Regulations and adapt one of the balance sheet formats shall, as a minimum, include in its statement of financial position line items that present the following, distinguishing between those items that are current and those that are non-current:
(a) property, plant and equipment;
(b) investment property carried at fair value through profit or loss;
(c) intangible assets;
(d) financial assets (excluding amounts shown under (e), (f), (j) and (k)); investments in associates;
(e) investments in jointly controlled entities;
(f) biological assets carried at cost less accumulated depreciation and impairment;
(g) biological assets carried at fair value through profit or loss;
(h) inventories;
(i) trade and other receivables;
(j) cash and cash equivalents;
(k) trade and other payables;
(l) provisions;
(m) financial liabilities (excluding amounts shown under (l) and (m));
(n) liabilities and assets for current tax;
(o) deferred tax liabilities and deferred tax assets (classified as non-current);
(p) non-controlling interest, presented within equity separately from the equity attributable to the owners of the parent; and
(q) equity attributable to the owners of the parent.
1AA.4 A small entity choosing to apply paragraph 1B(1) of Schedule 1 to the Small Companies Regulations and adapt one of the balance sheet formats shall, shall also disclose, either in the statement of financial position or in the notes, the following sub-classification of the line items presented:
(a) property, plant and equipment in classifications appropriate to the small entity;
(b) goodwill and other intangible assets;
(c) investments, showing separately shares and loans;
(d) trade and other receivables, showing separately amounts due from related parties and amounts due from other parties;
(e) trade and other payables, showing separately amounts payable to trade suppliers and amounts payable to related parties; and
(f) classes of equity, such as called up share capital, share premium, retained earnings, revaluation reserve, fair value reserve and other reserves.
1AA.5 The descriptions used in paragraphs 1AA.3 and 1AA.4, and the ordering of items or aggregation of similar items, may be amended according to the nature of the small entity and its transactions, to provide information that is relevant to an understanding of the small entity’s financial position, providing the information given is at least equivalent to that required by the balance sheet format had it not been adapted.
1AA.6 In order to comply with the requirement to distinguish between those items that are current and those that are non-current a small entity shall present current assets and non-current assets, and current liabilities and non-current liabilities, as separate classifications in its statement of financial position.
1A8.3.1.2 OmniPro comment
1A8.3.1.2.1 Overview
Schedule 3A (for entity accounts) and Schedule 4A (for consolidated financial statements) of Companies Act 2014 as amended by Companies (Accounting) Act 2017 does permit the IFRS layout to be applied if the information given is at least equivalent to that which would have been required by the use of formats had it not been adapted. This allows it to align with Sections 1AA.4 to 1AA.6 of FRS 102. The minimum disclosures as required by the small Companies regime must still be applied/adopted as detailed in Appendix C of S1A of FRS 102 for UK entities and Appendix D of S1A of FRS 102 for Republic of Ireland entities. The encouraged disclosure are in Appendix E of S1A of FRS 102.
1A8.3.1.2.2 Example adapted/IFRS layout – Balance sheet
See below an example of the proposed disclosure with the references to the notes where further disclosures are required which illustrates the requirements of section 1AA.3 to 1AA.6 of FRS 102:
STATEMENT OF FINANCIAL POSITION
|
Notes |
20XX CU |
20XX CU |
||
| ASSETS | ||||
| Non-current assets | ||||
| Property, plant and equipment | 13 | XXX | XXX | |
| Investment properties | 14 | XXX | XXX | |
| Biological assets at cost | 14A | XXX | XXX | |
| Biological assets at fair value | 14B | XXX | XXX | |
| Goodwill and intangible assets | 15 | XXX | XXX | |
| Financial assets | 16 | XXX | XXX | |
| Investments in associates and joint ventures | 16 | XXX | XXX | |
| Receivables | XXX | XXX | ||
| Deferred tax assets | XXX | XXX | ||
| Total non-current assets | XXX | XXX | ||
|
Current assets |
||||
| Inventory | XXX | XXX | ||
| Trade and other receivables | 18 | XXX | XXX | |
| Derivative financial instruments | 19 | XXX | XXX | |
| Cash and cash equivalents | XXX | XXX | ||
| Total current assets | XXX | XXX | ||
| TOTAL ASSETS | XXX | XXX |
| EQUITY | ||||
| Called up share capital | 20 | XXX | XXX | |
| Fair value reserve | 21 | XXX | XXX | |
| Share premium | XXX | XXX | ||
| Retained earnings and other reserves | XXX | XXX | ||
| Total attributable to the equity holders of the parent | XXX | XXX | ||
| Non-controlling interest | XXX | XXX | ||
| TOTAL EQUITY | XXX | XXX | ||
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Interest-bearing borrowings (optional) | XXXX | XXXX | ||
| Deferred tax liabilities | XXX | XXX | ||
| Contingent acquisition consideration (optional) | – | – |
|
Other payables (note required if relate to trade or related parties) |
22 | – | – | |
| Provisions | XXX | XXX | ||
| Employee benefit obligations (optional) | XXX | XXX | ||
| Derivative financial instruments | 23 | XXXX | XXXX | |
| Total non-current liabilities | XXX | XXX |
| Current liabilities | ||||
| Interest-bearing borrowings (optional) | XXX | XXX | ||
| Trade and other payables | 24 | XXX | XXX | |
| Current tax payable | XXX | XXX | ||
| Contingent acquisition consideration (optional) | XXX | XXX | ||
| Employee benefit obligations (optional) | XXX | XXX | ||
| Provisions | XXX | XXX | ||
| Derivative financial instruments |
XXX _ |
XXX | ||
| Total current liabilities | XXX | XXX | ||
|
TOTAL LIABILITIES |
XXX |
XXX |
||
|
TOTAL EQUITY AND LIABILITIES |
XXX |
XXX |
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Examples
Example 2: Statement of compliance with FRS 102
Example 3: Transition note adjustment
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