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Contents
Section 1: Scope of financial reporting standard 102
1.1.1 Extract from FRS102: Section 1.1-1.2A.
1.2 Basis of preparation of financial statements.
1.2.1 Extract from FRS102: Section 1.3-1.7.
1.2.2.1 The choices available to entities when deciding what paperwork to use.
1.2.2.2 Where entities must apply a particular standard.
1.3 Reduced disclosures for subsidiaries (and ultimate parents)
1.3.1 Extract from FRS102: Section 1.8-1.13.
1.3.2.1 Qualifying entity defined.
1.3.2.1.1 What entities are not qualifying entities in practical terms?
1.3.2.2 What are the disclosure exemptions for qualifying entities?
1.3.2.3 What needs to be put in place in order for the disclosure exemption to be claimed?
1.4 Date from which effective and transitional arrangements.
1.4.1 Extract from FRS102: Section 1.14-1.15.
1.4.2.2 July 2015 amendments – where applicable.
1.4.2.3 Amendments to FRS 102 – Triennial review – adaption requirements.
1.4.2.4 Small entity get out for some non-market loans.
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The below extracts and guidance is applicable for periods beginning before 1 January 2019 and are based on the September 2015 version of FRS 102. For periods beginning on or after 1 January 2019, the March 2018 version of FRS 102 applies which incorporates the changes made by the Triennial review of FRS 102. Note the March 2018 version of FRS 102 can be voluntarily applies for periods beginning before 1 January 2019. For the extracts from the March 2018 version of FRS 102 and the related guidance please click on the following link. For details of a summary of the main changes as a result of the triennial review please see the following link.
SECTION 1: SCOPE OF FINANCIAL REPORTING STANDARD 102
1.1 Scope
1.1.1 Extract from FRS102: Section 1.1-1.2A
1.1 This FRS applies to financial statements that are intended to give a true and fair view of a reporting entity’s financial position and profit or loss (or income and expenditure) for a period
1.2 The requirements of this FRS are applicable to public benefit entities and other entities, not just to companies. However, those paragraph numbers prefixed with ‘PBE’ shall only be applied by public benefit entities, and shall not be applied directly, or by analogy, by entities that are not public benefit entities, other than, when specifically directed, entities within a public benefit entity group. A public benefit entity shall apply all paragraphs prefixed with ‘PBE’ to the extent that they are relevant and, for those public benefit entities within the scope of a Statement of Recommended Practice (SORP), their use is permitted by the applicable SORP.
1.2A An entity applying this FRS must ensure it complies with any relevant legal requirements applicable to it. This FRS does not necessarily contain all legal disclosure requirements. In relation to small companies (see Section 1A Small Entities) most legal disclosure requirements are included, but, for example, those only relevant when the financial statements have been audited are not included.
1.1.2 OmniPro comment
Section 1 provides details on the applicability of FRS 102 and the disclosure exemptions available to qualifying companies and small companies. Section 1A deals specifically with small companies. It also provides the date from which FRS 102 becomes effective.
As is clear from sections 1.1 to 1.2 A of FRS 102 FRS 102 has a very wide scope and applies to all forms of entities/business including public benefit entities and is not restricted to companies. The standard does not cover all statutory disclosure requirements. The standard ensures financial statements show a true and fair view. Certain accounting aspects for public benefit entities are dealt with in Section 34 of FRS 102. Similarly, retirement benefit entities, or entities operating in the extractive industries are also catered for with detailed guidance for the aforementioned included in section 34 of FRS 102. FRS 102 can be applied with SORP as long as the FRS 102 SORP is utliised. As stated in section 1.2 of FRS 102.
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Examples
Example 1: Disclosure example for a qualifying entity applying reduced disclosure exemptions.
Example 2: Disclosure detailing application of July 2015 amendments.
Example 3: Disclosure detailing application of July 2015 amendments.
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