[et_pb_section bb_built=”1″ admin_label=”Header – All Pages” transparent_background=”off” background_color=”#1e73be” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” custom_padding=”0px||0px|” next_background_color=”#000000″ custom_padding_tablet=”50px|0|50px|0″ custom_padding_last_edited=”on|desktop” global_module=”1221″][et_pb_row admin_label=”row” global_parent=”1221″ make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” custom_padding=”||5px|” allow_player_pause=”off” parallax=”off” parallax_method=”on” make_equal=”off” parallax_1=”off” parallax_method_1=”off” background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”4_4″][et_pb_post_title global_parent=”1221″ 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)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_padding=”10px|||” parallax=”on” background_color=”rgba(255,255,255,0)” /][/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” custom_padding=”30px||0px|” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” background_color=”#1e73be” prev_background_color=”#000000″ next_background_color=”#ffffff” custom_padding_tablet=”0px||0px|” global_module=”1228″][et_pb_row global_parent=”1228″ make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” custom_padding=”30px||0px|” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” column_padding_mobile=”on” background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”4_4″][et_pb_text global_parent=”1228″ background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” background_position=”top_left” background_repeat=”repeat” background_size=”initial”]
[breadcrumb]
[/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
[/et_pb_toggle][/et_pb_column][/et_pb_row][et_pb_row][et_pb_column type=”3_4″][et_pb_text admin_label=”Main Body Text” text_orientation=”justified” use_border_color=”off” border_color_all=”off” module_alignment=”left” _builder_version=”3.17.6″]
1A.9 Appendix B to Section 1A
1A9.1.1 Guidance on adapting the profit and loss account formats
1A9.1.1.1 Extract from FRS102: Section 1AB.1
1AB.1 As set out in paragraph 1A.14 a small entity shall present its profit or loss for a period in an income statement in accordance with the requirements for a profit and loss account 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 profit and loss account formats as set out in legislation (subject to any permitted flexibility);
(b) draw up an abridged profit and loss account (see paragraph 1AB.2) ; or
(c) adapt one of the profit and loss account formats (see paragraphs 1AB.3 to 1AB.4).
1A9.1.1.2 OmniPro comment
1A9.1.1.2.1 Analysis
The guidance in section 1Ab.1(b) of FRS 102 refers to UK Legislation. 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 as amended by Companies (Accounting) Act 2017 or apply the adapted formats (i.e IFRS formats) – Section 1AB.1 of FRS 102. See further details of the adapted format at 1A9.3.2.1.
In relation to section 1Ab.1(b) of FRS 102 ,the ROI legislation does not give the option to prepare an abridged profit and loss account as the only set of financial statements. ROI entities must apply the format in Schedule 3A of Companies Act 2014 for entity financial statements or the formats in Schedule 4A of Companies Act 2014 for consolidated financial statements.
See example of format 1 and format 2 below showing the application of section 1AB.1(a) of FRS 102 above.
1A9.1.1.2.2 Application of format 1 profit and loss account set out in legislation
Format 1 (application of S1AB.1 (a) of FRS 102)
- Turnover
- Cost of sales
- Gross profit or loss
- Distribution costs
- Administrative expenses
- Other operating income
- Income from shares in group undertakings
- Income from participating interests
- Income from other financial assets
- Other interest receivable and similar income
- Value adjustments in respect of financial assets and investments held as current assets
- Interest payable and similar expenses
- Tax on profit or loss
- Profit or loss after taxation
- Other taxes not shown under the above items
- Profit or loss for the financial year
1A9.1.1.2.3 Application of format 2 – profit and loss account set out in legislation
Format 2 (application of S1AB.1 (a) of FRS 102)
- Turnover
- Variation in stocks of finished goods and in work in progress
- Own work capitalized
- Other operating income
- (a) Raw materials and consumables
(b) Other external expenses
- Staff costs:
(a) Wages and salaries
(b) Social insurance costs
(c) Other retirement benefit costs
(d) Other compensation costs
- (a) Depreciation and other value adjustments in respect of tangible and intangible fixed asset
(b) Value adjustments in respect of current assets to the extent they exceed value adjustments that are normal in the undertaking concerned
- Other operating expenses
- Income from shares in group undertakings
- Income from participating Interests
- Income from other financial Assets
- Other interest receivable and similar income
- Value adjustments in respect of financial assets and investments held as current assets
- Interest payable and similar expenses
- Tax on profit or loss
- Profit or loss after taxation
- Other taxes not shown under the above items
- Profit or loss for the financial year
1A9.1.1.2.4 Example format 1 – profit and loss account.
See below the format and requirements for format 1 as detailed in Schedule 3A of Companies act 2014. 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 of S1A of FRS 102.
Two statement approach for an individual entity (i.e. not group accounts)
| Profit and Loss Account/Income statement | ||||
| For the Year Ended 31 December 20X | ||||
| Notes | 2015 | 2014 | ||
| CU | CU | |||
| Turnover | XXXXX | XXXXX | ||
| Cost of sales | (XXXX) | (XXXX) | ||
|
Gross profit |
XXXX |
XXXX |
||
| Selling and distribution costs | (XXX) | (XXX) | ||
| Administrative expenses | (XXX) | (XXX) | ||
| Other operating income | XXX | XXX | ||
|
Operating profit |
1 |
XXX |
XXX |
|
| Income from shares in group undertakings | XXX | XXX | ||
| Income from other financial assets | XXX | XXX |
| Profit before interest and taxation | XXXX | XXXX | ||
| Interest receivable and similar income | XXX | XXX | ||
| Interest payable and similar expenses | 2 | (XXX) | (XXX) | |
| Profit before taxation | 3 | XXXX | XXXX | |
| Tax on profit | (XXX) | (XXX) | ||
|
Profit for the financial year |
1,000,000 |
500,000 |
| Profit for the financial year attributable to: | |||
| Owners of the parent company | 1,000,000 | 500,000 | |
| 1,000,000 | 500,000 |
NOTE: THE BELOW IS ENCOURAGED TO BE PROVIDED WHERE ITEMS HAVE BEEN POSTED TO OTHER COMPREHENSIVE INCOME. IF NOT SHOWN IN OCI COMPANIES ACT REQUIRES THIS TO BE DISCLOSED N THE NOTES.
Separate page in the financial statements include: Statement of Comprehensive Income
| Profit for the financial year | 1,000,000 | 500,000 |
| Cash flow hedges | ||
| – effective portion of changes in fair value to cash flow hedges | XXX | XXX |
| – fair value of cash flow hedges transferred to income statement | XXX | XXX |
| Actuarial loss in respect of the defined pension scheme | (XXX) | (XXX) |
| Gain/(loss) on revaluation of intangible assets | 12 XXX | (XXX) |
| Gain/(loss) on revaluation of property, plant and equipment | 13 XXX | (XXX) |
| Gain/(loss) on revaluation of subsidiaries, associates, etc. | 14 XXX | (XXX) |
| Deferred tax on components of other comprehensive income | XXX | XXX |
| Total other comprehensive income for the year net of tax | 200,000 | (100,000) |
| Total comprehensive income for the year | 1,200,000 | 400,000 |
| Total comprehensive income for the financial year attributable to: | |||
| Owners of the parent company | XXX | XXX | |
| 1,200,000 | 400,000 | ||
Income from shares in group undertakings
-
-
-
-
- Income from participating interests
-
-
-
[/et_pb_text][et_pb_text _builder_version=”3.17.6″]
1A9.1.1.2.5 Notes required to profit and loss account at a minimum
Further disclosures on top of disclosures in Appendix C (for UK entities) Appendix D of S1A of FRS 102 for ROI entities may be required in order for the accounts to show a true and fair value The disclosures stated in Appendix D of Section 1A of FRS 102 (for ROI entities), Appendix C (for UK entities) where relevant to the profit and loss must be disclosed namely (disclosure in Appendix E of S1A of FRS 102 is also encouraged):
- Fair value movements posted to the profit and loss
- Treatment for taxation purposes of amounts posted to the revaluation reserve
- 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)
- Detail of movement in the profit and loss reserves to include detail of transfers between reserves
- Related party transactions that have not been conducted under normal market conditions (other than those with 100% owned group companies
- Dividend proposed in the period and if not paid the amount accrued
- Disclosures of change in accounting estimate
- Directors remuneration, including connected persons, dividend paid to directors and the material transactions with directors
- 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).
- Average number of employees employed during the year
- Impairment and reversal of impairments of all types of fixed assets
- Interest charged on group loans shown separately from other interest;
- Preference dividend recognised in interest
- Disclosure of prior period adjustments in the profit and loss account or a reclassification to the prior period
- Statement of comprehensive income where amounts recognised in other comprehensive income (OCI) (encouraged under Section 1A) However, if not shown schedule 3A of Companies Act and Appendix C (for UK entities) and Appendix D (for ROI entities) of S1A of FRS 102 requires disclosure of movement on revaluation reserve, cash flow hedge reserve, fair value reserve, profit and loss reserve and any tax impacts.
- Transition adjustments note where transition adjustments arise (encouraged under Appendix E of FRS 102)
Note Section 1A requires a small entity to provide any additional disclosure that is necessary for the financial statements to show a true and fair view in the notes to the financial statements, for example in relation to disaggregating gross profit or loss and disclosing turnover.
1A9.9.1.2.5.1 Consolidated profit and loss note requirements
For consolidated financial statements if voluntary prepared, section 1A.22 of FRS 102 encourages the following disclosures to be made
(a) the fact that the statements are consolidated financial statements;
(b) the basis for concluding that control exists when the parent does not own, directly or indirectly through subsidiaries, more than half of the voting power;
(c) any difference in the reporting date of the financial statements of the parent and its subsidiaries used in the preparation of the consolidated financial statements;
(d) the nature and extent of any significant restrictions (eg resulting from borrowing arrangements or regulatory requirements) on the ability of subsidiaries to transfer funds to the parent in the form of cash dividends or to repay loans; and
(e) the name of any subsidiary excluded from consolidation and the reason for exclusion.
1A9.2 Abridged Profit and Loss Account
1A9.2.1 Extract from FRS102: Section 1AB.2
1AB.2 A small entity choosing to apply paragraph 1A(2) of Schedule 1 to the Small Companies Regulations and draw up an abridged profit and loss account 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 gross profit or loss and disclosing turnover.
1A9.2.2 OmniPro comment
The ROI legislation does not give the option to prepare an abridged profit and loss account as the only set of financial statements. ROI entities must apply the guidance in Schedule 3A of Companies Act 2014 for entity financial statements or the guidance in Schedule 4A of Companies Act 2014 for consolidated financial statements hence the above guidance is not applicable for ROI entities.
1A9.3 Adapted Profit and Loss Account
1A9.3.1 Extract from FRS102: Section 1AB.3-1AB.4
1AB.3 A small entity choosing to apply paragraph 1B(2) of Schedule 1 to the Small Companies Regulations and adapt one of the profit or loss account formats shall, as a minimum, include in its income statement line items that present the following for the period:
(a) revenue;
(b) finance costs;
(c) share of the profit or loss of investments in associates (see Section 14 Investments in Associates) and jointly controlled entities (see Section 15 Investments in Joint Ventures) accounted for using the equity method;
(d) profit or loss before taxation;
(e) tax expense excluding tax allocated to other comprehensive income or equity; and
(f) profit or loss.
1AB.4 A small entity may include additional line items in the income statement and it amends the descriptions used in paragraph 1AB.3, and the ordering of items, when this is necessary to explain the elements of financial performance, providing the information given is at least equivalent to that required by the profit and loss account format had it not been adapted.
1A9.3.2 OmniPro comment
1A9.3.2.1 Analysis
Section 1AB.3 and 1AB.4 of FRS 102 permits the adapted profit and loss account formats to be utilised. In effect the adapted formats reflect the IFRS layouts. Schedule 3A (for entity accounts) and Section 4A (for consolidated financial statements) of Companies Act 2014 as amended by Companies (Accounting) Act 2017 also permits the adapted profit and loss account/IFRS layout to be applied if the information given is at least equivalent to that which would have been required by the use of Companies Act formats in schedule 3A. The minimum disclosures as required by the small Companies regime must still be applied. This can be called a profit and loss account or an income statement.
See below an example of the proposed disclosure with the references to the notes where further disclosures are required. Note the minimum disclosures in Appendix C for UK entities, Appendix D for ROI entities of Section 1A of FRS 102 are also required. The layout is the only thing that differs from the other two format.
1A9.3.2.2: Example adapted/IFRS layout on the profit and loss accounts
| Consolidated Statement of Comprehensive Income | ||||
| For the Year Ended 31 December 201X | ||||
| Notes | 2015 | 2014 | ||
| CU | CU | |||
| Revenue | XXXXX | XXXXX | ||
| Cost of sales | (XXXX) | (XXXX) | ||
| Gross profit | XXXX | XXXX | ||
| Selling and distribution costs | (XXX) | (XXX) | ||
| Administrative expenses | (XXX) | (XXX) | ||
| Other operating income | XXX | XXX | ||
| Group operating profit | 1 | XXX | XXX | |
| Share of profit in associates | XXX | XXX | ||
| Share of profit in joint venture | XXX | XXX | ||
| Profit before interest and taxation | XXXX | XXXX | ||
| Finance income | XXX | XXX | ||
| Finance costs | 2 | (XXX) | (XXX) | |
| Profit before taxation | XXXX | XXXX | ||
| Tax on profit | (XXX) | (XXX) | ||
| Profit for the year | 1,000,000 | 500,000 | ||
[/et_pb_text][et_pb_text _builder_version=”3.17.6″]
|
Other Comprehensive Income (encouraged to be disclosed where transactions are ported to OCI) Cash Flow Hedge |
||
| – effective portion of changes in fair value to cash flow hedges | XXX | XXX |
| – fair value of cash flow hedges transferred to income statement | XXX | XXX |
| Actuarial loss in respect of the defined pension scheme | (XXX) | (XXX) |
| Share of other comprehensive income of associates | XXX | (XXX) |
| Share of other comprehensive income of joint controlled entities | XXX | (XXX) |
| Gain/(loss) on revaluation of intangible assets | XXX | (XXX) |
| Gain/(loss) on revaluation of property, plant and equipment | XXX | (XXX) |
| Gain/(loss) on revaluation of subsidiaries, associates, etc. | XXX | (XXX) |
| Deferred tax on components of other comprehensive income | XXX | XXX |
| Total other comprehensive income for the year net of tax | 200,000 | (100,000) |
| Total comprehensive income for the year | 1,200,000 | 400,000 |
| Total comprehensive income for the financial year attributable to: | ||
| Owners of the parent company | 1,200,000 | 400,000 |
| 1,200,000 | 400,000 | |
| Profit for the financial year attributable to: | ||
| Owners of the parent company | 1,000,000 | 400,000 |
[/et_pb_text][/et_pb_column][et_pb_column type=”1_4″][et_pb_toggle admin_label=”Practical Examples” _builder_version=”3.0.105″ title=”Practical Examples” open=”off”]
Examples
Example 2: Statement of compliance with FRS 102
Example 3: Transition note adjustment
[/et_pb_toggle][/et_pb_column][/et_pb_row][/et_pb_section]