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Identification of the financial statements
Extract from FRS102: Section 3.23-3.24
3.23 An entity shall clearly identify each of the financial statements and the notes and distinguish them from other information in the same document. In addition, an entity shall display the following information prominently, and repeat it when necessary for an understanding of the information presented:
(a) the name of the reporting entity and any change in its name since the end of the preceding reporting period;
(b) whether the financial statements cover the individual entity or a group of entities;
(c) the date of the end of the reporting period and the period covered by the financial statements;
(d) the presentation currency, as defined in Section 30 Foreign Currency Translation; and
(e) the level of rounding, if any, used in presenting amounts in the financial statements.
3.24 An entity shall disclose the following in the notes:
(a) the legal form of the entity, its country of incorporation and the address of its registered office (or principal place of business, if different from the registered office); and
(b) a description of the nature of the entity’s operations and its principal activities, unless this is disclosed in the business review (or similar statement) accompanying the financial statements.
OmniPro comment
In order to meet the requirements of Section 3.23, the name of the entity and the period end date should be included on the top of every page of the financial statements and also on the cover page of the financial statements. Where a change of name has occurred this should also be included on the top of every page e.g. ‘XXXX Limited (Formerly XXX Limited)’ and on the cover page of the financial statements.
The basis of preparation note should disclose the currency in which the financial statements are presented. See example below:
Example 7: Basis of Preparation Policy
‘The financial statements are prepared in Euro which is the functional currency of the company. OR The company has chosen to present the financial statement in a currency that differs from its functional currency so that it can be easily consolidated into the parent company’s financial statements. The functional currency of the company is XXX.‘
Where the current and comparative year is not of equal length a disclosure should be included similar to what was illustrated above. It should also be detailed on the face of the profit and loss account.
See below an illustration of the requirements of Section 3.24 above
Example 8: Basis of Preparation Policy
‘XXX Limited is primarily engaged in the provision of construction services to both the private and commercial sectors. From their operations base and depot in XXXXXX, Dunblock, Any County they also sell pre-cast concrete products to private individuals and the construction industry. The company is supplied with the pre-cast concrete products by a wholly owned subsidiary company, which operates independently from a separate location.
The company is a limited liability company incorporated and in XXX.’
Presentation of information not required by this FRS
Extract from FRS102: Section 3.25
3.25 This FRS does not address presentation of interim financial reports. An entity that prepares such reports shall describe the basis for preparing and presenting the information. FRS 104 sets out a basis for the preparation and presentation of interim financial reports that an entity may apply
OmniPro comment
Interim financial reporting is beyond the scope of this manual and as a result has not been discussed in further detail.
Transition exemptions
FRS 102 provides no exemptions on transition to FRS 102 however the requirements are very similar to old GAAP so there should be no issues on transition.
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