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Appendix A to Section 1A
Guidance on adapting the balance sheet formats
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:

  1. apply the required balance sheet formats as set out in legislation (subject to any permitted flexibility);
  2. draw up an abridged balance sheet (see paragraph 1AA.2); or
  3. adapt one of the balance sheet formats (see paragraphs 3 to 1AA.6).

OmniPro comment

See example of format 1 below showing the application of (a) above. A note is required for each item in the balance sheet showing the items required in Format 1.

See below the format and requirements for format 1 as detailed in S.I. 980/2015. 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 and D below.

A. Called up share capital not paid (This can be included in ‘other debtors’ also)

B. Fixed assets

i) Intangible assets

1) Goodwill

2) Other intangible assets

ii) Tangible assets

1) Land and buildings

2) Plant and machinery

iii) Investments

1) Shares in group undertakings and participating interests

2) Loans to group undertakings and undertakings in which the company has a participating interest

3) Other investments other than loans

4) Other investments

C. Current Assets

i) Stocks

1) Stocks

2) Payments on account

ii) Debtors

1) Trade debtors (show split of amount falling due within one year and after one year)

2) Amounts owed by group undertakings and undertakings in which the company has a participating interest (show split of amount falling due within one year and after one year)

3) Other debtors (show split of amount falling due within one year and after one year)

iii) Investments

1) Shares in group undertakings

2) Other investments

D. Prepayments and accrued income (note can be included in other debtors above also)

E. Creditors: amounts falling due within one year

1) Bank loans and overdrafts

2) Trade creditors

3) Amounts owed to group undertakings and undertakings in which the company has a participating interest

4) Other creditors (can also include accruals and deferred income in (J) below)

5)Creditors in respect of taxation and social

6)Carry amount of any convertible debt

F. Net current assets (liabilities)

G. Total assets less current liabilities

H. Creditors: amounts falling more than one year

1) Bank loans and overdafts

2) Trade Creditors

3) Amounts owed to group undertakings and undertakings in which the company has a participating interest

4) Other creditors (can also include accruals and deferred income in (5) below)

5) Creditors in respect of taxation and social security

6) Carry amount of any convertible debt

I. Provisions for liabilities

J. Accurals and deferred income (can be shown in other creditors in E.4 above)

K. Capital and reserves

i) Called up share capital

ii) Share premium account

iii) Revaluation reserve

iv) Other reserves

v) Profit and loss account

(NOTE: 4 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 INTERESTAND OTHER DEBTORS).

Extract from the Balance Sheet – Format 1 At 31 December 2015

 

Notes

2015

 

2014

   

CU

 

CU

Fixed assets

 

 

 

 

Tangible assets

1

XXXX

 

XXXX

Intangible assets

2

XXXX

 

XXXX

Investments

3

XXXX

 

XXXX

 

 

XXXX

 

XXXXX

Current assets

 

 

 

 

Stocks

 

XXXXX

 

XXXXX

Debtors

4

XXXXX

 

XXXXX

Prepayments and accrued income (can be shown within debtors also)

Investments

 

 

5

XXXXX

 

XXXXX

 

XXXXX

 

XXXXX

Cash at bank and in hand

 

XXXXX

 

XXXXX

 

 

XXXXX

 

XXXXX

 

Creditors amounts falling due within one year

 

6

 

(XXXXX)

 

 

(XXXXX)

 

Net current assets

 

 

XXXXX

 

 

XXXXX

Total assets less current liabilities

 

XXXXX

 

XXXXX

 

Creditors – amounts falling due after more than one year

 

7

 

(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

8

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

 

XXXXX

 

XXXXX

Profit and loss account

 

XXXXX

 

XXXXX

Shareholders’ funds

 

XXXXX

 

XXXXX

The below disclosure should be included at the bottom of the balance sheet:

These financial statements have been prepared in accordance with the provisions applicable to companies 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[1]           

 

                                                                                             

Mr A Director                                                                         

Director                                                                                             

DATE:                                   

The notes to be included in the financial statements to support the balance sheet as stated in Appendix 1A below are:

These are minimum requirements but entities are encouraged to include:

Details of adjustment posted on transition to FRS 102

Abridged balance sheet

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.

OmniPro comment

The difference between this format and the format above is that notes are required for a limited number of items included in the balance sheet. In effect there is no need for notes to be included for the numbers above on page 12 and 13. Note the only difference here in the abridgement on the balance sheet. The disclosures stated in Appendix C and D of section 1A detailed in the following pages are still required no matter what option is taken. In order for an entity to adopt this approach, all the members of the company must have consented to the drawing up of the abridged balance sheet and profit and loss. These are minimum requirements but entities are encouraged to include:

Where format 1 or 2 of the companies Act is utilised, there is a requirement to show the split of debtors between less than one year and greater than one year.

Where format 2 is adopted there is also a requirement to show the split of creditors between within 1 year and after 1 year.

See example below of format 1. You will note there are no notes included to certain items as they are not required under the small companies regime where the abridgement option is availed of. Example of disclosure notes have been included in Appendix C&D below (the reason why there is five notes here is due to the fact that Appendix C of Section 1A requires it even though the schedule above/abridgement option does not).

Extract from the Abridged Balance Sheet – Format 1

 

At 31 December 2015

 

 

Notes

2015

 

2014

 

 

CU

 

CU

Fixed assets

 

 

 

 

Tangible assets

1

XXXX

 

XXXX

Intangible assets

2

XXXX

 

XXXX

Investments

3

XXXX

 

XXXX

 

 

XXXX

 

XXXXX

Current assets

 

 

 

 

Stocks

 

XXXXX

 

XXXXX

Debtors amounts falling due within one year

 

XXXXX

 

XXXXX

Debtors amounts falling due after more than one year

Prepayments and accrued income (can be shown within debtors also)

Investments

 

XXXXX

XXXXX XXXXX

 

XXXXX

XXXXX XXXXX

Cash at bank and in hand

 

XXXXX

 

XXXXX

 

 

XXXXX

 

XXXXX

Creditors amounts falling due within one year

 

(XXXXX)

 

(XXXXX)

Net current assets

 

XXXXX

 

XXXXX

Total assets less current liabilities

 

XXXXX

 

XXXXX

Creditors – amounts falling due after more than one year

 

(XXXX)

 

(XXXX)

Provisions for liabilities

 

(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

 

XXXXX

 

XXXXX

Share premium account

 

XXXXX

 

XXXXX

Capital redemption reserve

 

XXXXX

 

XXXXX

Revaluation reserve

4

XXXXX

 

XXXXX

Cash flow hedge reserve

5

XXXXX

 

XXXXX

Other reserve

 

XXXXX

 

XXXXX

Profit and loss account

 

XXXXX

 

XXXXX

Shareholders’ funds

 

XXXXX

 

XXXXX

         

 

The notes to be included in the financial statements to support the balance sheet as stated in Appendix 1A below are:

Adapted balance sheet

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:

  1. property, plant and equipment;
  2. investment property carried at fair value through profit or loss;
  3. intangible assets;
  4. financial assets (excluding amounts shown under (e), (f), (j) and (k));
  5. investments in associates;
  6. investments in jointly controlled entities;
  7. biological assets carried at cost less accumulated depreciation and impairment;
  8. biological assets carried at fair value through profit or loss;
  9. inventories;
  10. trade and other receivables;
  11. cash and cash equivalents;
  12. trade and other payables;
  13. provisions;
  14. financial liabilities (excluding amounts shown under (l) and (m));
  15. liabilities and assets for current tax;
  16. deferred tax liabilities and deferred tax assets (classified as non-current);
  17. non-controlling interest, presented within equity separately from the equity attributable to the owners of the parent; and
  18. equity attributable to the owners of the

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 also disclose, either in the statement of financial position or in the notes, the following sub-classifications of the line items presented:

  1. property, plant and equipment in classifications appropriate to the small entity;
  2. goodwill and other intangible assets;
  3. investments, showing separately shares and loans;
  4. trade and other receivables, showing separately amounts due from related parties and amounts due from other parties;
  5. trade and other payables, showing separately amounts payable to trade suppliers and amounts payable to related parties; and
  6. classes of equity, such as called up share capital, share premium, retained earnings, revaluation reserve, fair value reserve and other

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 and non- current assets, and current and non-current liabilities, as separate classifications in its statement of financial position.

OmniPro comment

The above gives an entity the option to lay the balance sheet/statement of financial position in line with IFRS. This can be applied to the abridged balance sheet also

See below an example of the proposed disclosure with the references to the notes where further disclosures are required:

STATEMENT OF FINANCIAL POSITION

 

 

Notes

              2015

              2014

   

  CU

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

 

 

 

 

 

 

 

 

[1] P32.9 FRS 102 – A company shall disclose the date when the financial statements were authorised for issue and who gave that authorisation. S.40 of CAA Bill 2016 amends S.324 to require a statement on the balance sheet stating that the accounts have been prepared under the small companies regime.

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