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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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4.4 Information to be presented either in the statement of financial position or in the notes- Share Capital and Equity Disclosures
4.4.1 Extract from FRS 102: Section 4.12-4.13
4.12 An entity with share capital shall disclose the following, either in the statement of financial position or in the notes:
(a) For each class of share capital:
(ii) The number of shares issued and fully paid and issued but not fully paid.
(iii) Par value per share, or that the shares have no par value.
(v) The rights, preferences and restrictions attaching to that class including restrictions on the distribution of dividends and the repayment of capital.
(vi) Shares in the entity held by the entity or by its subsidiaries, associates, or joint ventures.
(vii) Shares reserved for issue under options and contracts for the sale of shares, including the terms and amounts.
(b) A description of each reserve within equity.
4.13 An entity without share capital, such as a partnership or trust, shall disclose information equivalent to that required by paragraph 4.12(a), showing changes during the period in each category of equity, and the rights, preferences and restrictions attaching to each category of equity.
4.4.2 OmniPro comment
4.4.2.1 Overview
See application of the disclosure requirements in Section 4.12 of FRS102 with regard to Share Capital
Under Irish company law, disclosures are required for the comparative year also and require the authorized capital to be disclosed (not specifically required by FRS102)
4.4.2.2 Share Capital Disclosures
Example 2: Extract from the notes to the financial statements – Ordinary share capital
| Called up ordinary share capital | 2015 | 2014 |
| CU | CU | |
| Authorized ordinary share capital | ||
| 1,000,000 ordinary shares of CU1 each | XXXX | XXXXX |
| 100,000 “A” ordinary shares of CU1 each | XXXX | XXXXX |
| Issued and fully paid ordinary share capital | ||
| 492,000 (2014: 512,000) ordinary shares of CU1 each | XXXX | XXXX |
| 7,000 (2014: 7,000) “A” ordinary shares of CU1 each |
XXXX
|
XXXX
|
| Shares presented as equity | XXXXX | XXXXX |
On 1 April a further 20,000 ordinary shares were issued at CU1.50 each. The premium on issue of CU5,000 is reflected in the share premium reserve.
| Preference share capital | 2015 | 2014 |
| CU | CU | |
| Authorized preference share capital | ||
| 2,250,000 redeemable convertible “A” preference shares of CU1 each | XXXXX | XXXXX |
| 300,000 11% redeemable cumulative “B” preference shares of CU1 each | XXXXX | XXXXX |
| 100,000 redeemable cumulative “C” preference shares of CU1 each | XXXXX | XXXXX |
| 600,000 3% cumulative redeemable convertible “D” shares of CU1 each |
XXXXX
|
XXXXX
|
| XXXXX | XXXXX | |
| Issued and fully paid preference share capital | ||
| 2,250,000 redeemable convertible “A” preference shares of CU1 each | XXXXX | XXXXX |
| 300,000 11% redeemable cumulative “B” preference shares of CU1 each | XXXXX | XXXXX |
| Shares presented as liabilities | XXXXX | XXXXX |
The redeemable “A” and “B” preference shares are classified as liabilities in accordance with Section 22 (Liabilities and Equity). The rights attaching to each class of preference shares are as follows:
(a) 11% Redeemable cumulative “B” preference share capital
The holders of these shares shall be entitled to attend all general meetings of the company but not to vote. The holders are entitled to payment of their dividend in preference to all shareholders with the exception of the “D” shareholders.
The company was due to redeem these shares at par between XXXXX and XXXXX at a rate of 75,000 shares per annum. All arrears of cumulative dividends are to be paid at the time of redemption. At XX/XX/XX, these shares had not been redeemed.
The holders in the event of a winding up will be entitled to repayment of capital at par and dividends due in priority to the payment of other share classes.
(b) Redeemable cumulative “C” preference share capital
The holders of these shares shall be entitled to attend all general meetings of the company but not to vote.
The shares were entitled to be redeemed at par in equal tranches of 50,000 shares annually on the 1st of June each year commencing XX/XX/XX. At XX/XX/15 these shares had not been redeemed.
In the event of a winding up, the “C” shareholders will rank behind the “D” shareholders but in priority to all others in the right to repayment.
At the period end date there were xxx share options issued under an employee share option scheme. These options are due to crystallise within x to x years.
OR ALTERNATIVE LAYOUT
| Called up share capital | 2015 | 2014 | ||
| CU | Number | CU | Number | |
| Issued and fully paid ordinary shares of CU1 each | ||||
| Balance at beginning of year | XXX | XXX | XXX | XXX |
| Issue of share capital | XXX | XXX | XXX | XXX |
| Redemption of share capital |
–
|
–
|
(XXX)
|
(XXX)
|
| Balance at end of year | XXX | XXX | XXX | XXX |
X Shares of CUX each were held by a subsidiary: X limited, which had a share premium of CUX each
On 1 April a further 20,000 ordinary shares were issued at CU1.50 each. The premium on issue is reflected in the share premium reserve.
During the year the company repurchased XX shares at a price of CUXXX per share. The nominal element of the shares bought back were credited to the capital redemption reserve fund and the premium recognised in profit and loss reserves.
4.4.2.3 Notes required on any reserves included in equity
Section 4.13(B) of FRS102 requires that a description of each reserve included within equity to be provided.
Example 3: Extract from the notes to the financial statements – Reserves note
Detailed below are the movements on equity throughout the year. An explanation of each component of equity has also been provided. See further details in Section 6 of FRS 102
| Called up Share Capital | Revaluation Reserve | Other Reserve | Profit and Loss Account | Cash flow hedge Reserve | Total attributable to the Parent | Non-controlling Interest |
Total Equity |
|
| CU | CU | CU | CU | CU | CU | CU | CU | |
| Balance at 1 January 2014 | 100,000 | 225,000 | 115,375 | 115,375 | 1,000 | 331,375 | 100,000 | 441,375 |
| Changes in ownership interests in subsidiaries which do not result in a loss of control | – | – | – | 100,000 | – | 100,000 | (100,000) | – |
| Profit for the year | 10,000 | 83,818 | 91,818 | 2,000 | 93,818 | |||
| Balance at 31 December 2014 | 100,000 | 225,000 | 0 | 209,193 | 1,000 | 2,000 | 535,193 | |
| Balance at 1 January 2015 | 100,000 | 225,000 | 0 | 209,193 | 1,000 | 0 | 0 | 535,193 |
| Equity Shares issued net of issue costs | 20,000 | – | – | – | – | 20,000 | – | 30,000 |
| Profit for the year | – | – | – | 1,005,772 | – | 959,772 | 10,000 | 1,005,772 |
|
Equity dividends paid (see note XX) |
(9,900) | (9,900) | (100) | (10,000) | ||||
| Capitalisation of shares | 1,000 | (1,000) | – | – | – | – | ||
| Other Comprehensive Income | – | – | (15,000) | – | – | – | – | (15,000) |
| Balance at 31 December 2015 | 109,000 | 225,000 | (14,000) | 1,214,965 | (15,000) | XXXX | 10,100 | 1,554,965 |
i) Revaluation reserve
The revaluation reserve arises because of the company’s policy of revaluing property, plant and equipment on a regular basis. During the year the depreciation net of the release of deferred tax on the uplift on the valuation was transferred from profit and loss reserves to the revaluation reserve. On inception of the revaluation reserve the reserve was recorded net of deferred tax.
ii) Cash flow hedge reserve
The cash flow hedge reserve is used to record transactions arising from the company’s cash flow hedging arrangements. These are expected to crystallise within the next 12 months as detailed in note X.
iii) Non-distributable reserve
This reserve arose on transition to FRS 102, where the entity applied the exemption in Section 35 of FRS 102 to deem a previous revaluation on property as deemed cost. The amount included in the reserve is net of deferred tax at the rate the asset is expected to be realised. During the year the depreciation net of the release of deferred tax on the uplift on the valuation was transferred from profit and loss reserve to the revaluation reserve. On inception of the non-distributable reserve the reserve was recorded net of deferred tax.
iv) Capital redemption reserve
The capital redemption reserve reflects the value of shares bought back by the company. There was no activity on this reserve in the current year
v) Share premium
The share premium reflects the premium received on shares issued by the company. The increase arises due to the allotment of 10,000 shares above par during the year as detailed in note X.
vi) Capital development fund
The capital development fund is operated to accumulate funds to meet the cost of further development expenditure. It is envisaged that if the fund is not used for development, either ordinary shares will be issued in respect of amounts collected by the fund, or that contributions received will be refunded to the members. The issue of shares, refund of monies, or utilisation of the reserve for development purposes is at the discretion of the XXXXXX. No amount was allocated to the reserve during the year.
vii) Non-controlling interest
The non-controlling interest reserve reflects the proportion of the net assets owned by non-wholly owned subsidiaries. The movement in the year reflects the proportion of profits and other comprehensive income allocated to the non-controlling party.
OR
During the year the group acquired the remaining x% of XYZ Limited for XXX. As a result, the non-controlling interest was derecognized, and the balance was posted to profit and loss reserves in line with Section 22 of FRS 102.
viii) Other reserves
Other reserves relate to costs incurred on the issue of share-based payments to employees which was required to be accounted for in equity under Section 26 of FRS 102.
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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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