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Contents
4.2 Small Companies-Exemptions.
4.2.1Extract from FRS102: Section 4.1A.
4.3 Information to be presented in the statement of financial position.
4.3.1 Extract from FRS102: Section 4.2-4.4A and Section 4.7.
4.3.2.2 Practical application of Format 1.
4.3.2.3 Schedule 3 Format 1 -Balance Sheet.
4.3.2.4 Schedule 3 Format 2- Balance Sheet.
4.4.1 Extract from FRS102: Section 4.12-4.13.
4.4.2.2 Share Capital Disclosures.
4.4.2.3 Notes required on any reserves included in equity.
4.5.1 Extract from FRS102: Section 4.14.
4.6 Alternative statement of financial position format.
4.6.1 Extract from FRS102: Section 4.2-4.2D.
4.6.2.2 Example of Alternative statement of Financial Position.
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4.3 Information to be presented in the statement of financial position
4.3.1 Extract from FRS102: Section 4.2-4.4A and Section 4.7
4.2 An entity shall present a statement of financial position in accordance with one of the following requirements for a balance sheet:
(a) Part 1 General Rules and Formats of Schedule 1 to the Regulations.
(b) Part 1 General Rules and Formats of Schedule 2 to the Regulations.
(c) Part 1 General Rules and Formats of Schedule 3 to the Regulations.
(d) Part 1 General Rules and Formats of Schedule 1 to the LLP Regulations.
The consolidated statement of financial position of a group shall be presented in accordance with the requirements for a consolidated balance sheet in Schedule 6 to the Regulations or Schedule 3 to the LLP Regulations.
4.3 An entity shall present additional line items, headings and subtotals in the statement of financial position when such presentation is relevant to an understanding of the entity’s financial position.
Debtors due after more than one year
4.4A Unless an entity chooses to apply paragraph 1A(1) of Schedule 1 to the Regulations, in instances where the amount of debtors due after more than one year is so material in the context of the total net current assets that in the absence of disclosure of the debtors due after more than one year on the face of the statement of financial position readers may misinterpret the financial statements, the amount should be disclosed on the face of the statement of financial position within current assets. In most cases it will be satisfactory to disclose the amount due after more than one year in the notes to the financial statements.
Creditors: amounts falling due within one year
4.7 Unless an entity chooses to apply paragraph 1A (1) of Schedule 1 to the Regulations, an entity shall classify a creditor as due within one year when the entity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least 12 months after the reporting date. For example, this would be the case if the earliest date on which the lender, exercising all available options and rights, could require repayment or (as the case may be) payment was within 12 months after the reporting date.
4.3.2 OmniPro comment
4.3.2.1 The Formats
The references in section 4.2 of FRS102 are to the UK Companies Act. The relevant references to the Irish Companies Acts with regard to the Balance Sheet layout are for an entity
Format 1 Balance sheet format – Schedule 3 of Companies Act 2014 (See formats at 2.3.2.4)
Format 2 Balance sheet format – Schedule 3 of Companies Act 2014 (see formats at 4.3.2.5)
The relevant references to the Irish Companies Acts with regard to the Consolidated Balance Sheet (i.e. the consolidated financial statements) are
Format 1 Balance Sheet- Schedule 4 of Companies Act 2014
Format 2 Balance Sheet- Schedule 4 of Companies Act 2014
Additional line items or headings on subtotals can be added to the balance sheet financial position if it is relevant to the understanding or is stated in Section 4.3 of FRS102
An entity may adopt the formats above to comply with IFRS / alternative layouts if the disclosures required by the formats are met at a minimum. This is stated in Company Law and sections 4.2A to 4.2B of FRS102.
4.3.2.1.1 Debtors
As per section 4.6 of FRS if debtors greater than one year are material it must be shown on the face of the balance sheet.
4.3.2.1.2 Creditors
As per section 4.7 of FRS102 creditors who’s repayment cannot be avoided within 12 months of period end must be classified as current liabilities or creditors amounts full due within one year.
It is evident from the above that the statement of financial position can be called a balance sheet or statement of financial position. The balance sheet should follow one of the layouts in the Companies Act as detailed above or can be laid out in the format of FRS102. Section 4.2A-4.2D of FRS102 provides a different choice as to what format the balance sheet can be presented in. Section 4.2A-4.2D of FRS102 has been discussed in the section titled ‘Alternative balance sheet format at 4.6.2. It is an adoption of the IFRS layout.
4.3.2.2 Practical application of Format 1
See below the application of the above guidance. Where a note is included beside an item the make-up must be disclosed in the notes of the financial statements.
Example 1: Extract from the Consolidated Balance Sheet – S.4 FRS 102
At 31 December 2015
| 2015 | 2014 | ||
| CU | CU | ||
| Fixed assets | |||
| Tangible assets | 1 | XXXX | XXXX |
| Negative goodwill | 2 | (XXXX) | – |
| Intangible assets | 3 | XXXX | XXXX |
| Financial assets | 4 |
XXXX
|
XXXX
|
|
XXXX
|
XXXX
|
||
| Current assets | |||
| Stocks | 5 | XXXXX | XXXXX |
| Debtors | 6 | XXXXX | 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 | XXXXX | XXXXX | |
| Non-distributable reserve | XXXXX | XXXXX | |
| Profit and loss account |
XXXXX
|
XXXXX
|
|
| Equity attributable to owners of the parent company | XXXXX | XXXXX | |
| Non-controlling interest |
XXXXX
|
XXXXX
|
|
| Total equity | XXXXX | XXXXX |
4.3.2.3 Schedule 3 Format 1 – Balance Sheet
See Schedule 3 format 1 as per Companies Act 2014.
| 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 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 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 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 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 un denominated 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 (10) |
| VI. Profit or loss for the financial year (10). |
4.3.2.4 Schedule 3 Format 2- Balance Sheet
See Schedule 3 Format 2 requirements as per Companies Act 2014.
| 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 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 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 |
| CAPITAL, RESERVES AND LIABILITIES |
| A. Capital and reserves |
|
I. Called-up share capital presented as equity |
|
II. Share premium account |
|
III. Revaluation reserve |
|
IV. Other reserves |
|
1. Other undominated 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 participating interests |
|
9. Other creditors including tax and social insurance |
|
10. Accruals |
|
11. Deferred income |
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Examples
Example 1: Extract from the Consolidated Balance Sheet – S.4 FRS 102.
Example 2: Extract from the notes to the financial statements – Ordinary share capital
Example 3: Extract from the notes to the financial statements – Reserves note.
Example 4: Alternative Statement of Financial Position S4.2.A – S4.2D Alternative IFRS Version.
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