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Section 1 – Introduction
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Section 1 – Analysis
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- Section 1
- Section 2
- Section 3
- Section 4
- Section 5
- Section 6
- Section 7
- Section 8
- Section 9
- Section 10
- Section 11
- Section 12
- Section 13
- Section 14
- Section 15
- Section 16
- Section 17
- Section 18
- Section 19
- Section 20
- Section 21
- Section 22
- Section 23
- Section 24
- Section 25
- Section 26
- Section 27
- Section 28
- Section 29
- Section 30
- Section 31
- Section 32
- Section 33
- Section 34
- Section 35
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- Section 1
- Section 2
- Section 3
- Section 4
- Section 5
- Section 6
- Section 7
- Section 8
- Section 9
- Section 10
- Section 11
- Section 12
- Section 13
- Section 14
- Section 15
- Section 16
- Section 17
- Section 18
- Section 19
- Section 20
- Section 21
- Section 22
- Section 23
- Section 24
- Section 25
- Section 26
- Section 27
- Section 28
- Section 29
- Section 30
- Section 31
- Section 32
- Section 33
- Section 34
- Section 35
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Section Downloads
[/et_pb_text][et_pb_tabs admin_label=”Section Downloads” global_parent=”1284″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [et_pb_tab title=”Quick Guide” tab_font_select=”default” body_font_select=”default”] Downloads
Section 1 Scope Quick Guide (PDF) (170 downloads )
OmniPro FRS 102 35 Part Quick Guide (420 downloads )
Downloads
Section 1 Scope of Financial Reporting Standard 102 Detailed Guide (PDF) (155 downloads )
Website Links
Scope and Basis of Preparation and Financial Statements
Reduced Disclosures for Subsidiaries and Ultimate Parents
Date from which Effective and Transitional Arrangements Including Required Disclosure
Appendix A to Section 1A – Guidance on Adapting Balance Sheet Formats
Appendix B to Section 1A – Guidance on Adapting the Profit and Loss Format
Appendix C to Section 1A – Minimum Disclosure Requirements for Small Entities
Appendix D to Section 1A – Additional Disclosures Encouraged for Small Entities
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Downloads
FRS 102 35 Part Differences Quick Guide (859 downloads )
FRS 102 35 Part Differences Guide (581 downloads )
FRS 102 Differences on Transition Checklist (1119 downloads )
FRS 102 Differences on Transition Examples Appendix (1092 downloads )
Fillable Differences on Transition Checklist (866 downloads )
[/et_pb_tab][et_pb_tab title=”Practical Examples” tab_font_select=”default” body_font_select=”default” tab_font=”||||” tab_line_height=”2em” tab_line_height_tablet=”2em” tab_line_height_phone=”2em” body_font=”||||” body_line_height=”2em” body_line_height_tablet=”2em” body_line_height_phone=”2em”]
Downloads
Section 1 Practical Examples (292 downloads )
Website Links
Practical Examples – Scope of Financial Reporting Standard FRS 102
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Downloads
Section 1 Disclosure Examples (238 downloads )
Summary
Section 1 deals with the scope of FRS 102 and the exemptions which can be claimed.
What are the key points to note?
FRS 102 is available for use by unlisted groups and listed or unlisted individual entities preparing financial statements that are intended to give a true and fair view.
Qualifying entities1 can take advantage of certain disclosure exemptions which are set out in this section. These exemptions are available if certain requirements are met as detailed in Section 1.11; the requirements include shareholder approval for the availing of these exemptions and are provided on the condition that the entities results are included in publically available consolidated financial statements that give a true and fair view.
The key exemptions are:
- Preparation of a cash-flow statement and related notes (Section 7);
- Certain financial instruments-related disclosures (Sections 11 & 12) – provided there are equivalent notes in the parent entity financial statements;
- Certain share-based payment disclosures (Section 26) – provided there are equivalent notes in the parent entity financial statements;
- Key management personnel compensation disclosure (Section 28); and
- Presentation of a reconciliation of shares outstanding in the period. (Section 4)
Financial institutions cannot take advantage of exemptions regarding financial instruments.
FRS 102 shall apply for periods beginning on or after 1 January 2015 with the comparative figures restated to conform to FRS 102 and opening balance sheet for the comparative restated.
Section 1A details the exemptions that are available for companies who will meet the requirement of the small companies/entities regime. A qualifying small entity is that which is defined as a small company in Company Law subject to some further requirements (see section 1A of this guide for further details). Qualifying Small entities must apply the recognition and measurement of FRS 102 but are subject to less presentation and disclosure requirements.
The minimum that is required under FRS 102 under the small entity regime is:-
- A statement of financial position;
- An income statement;
- Provide sufficient information in the notes to the financial statement in order to show
a true and fair view. Appendix C and Appendix D of Section 1A detail what would b
- A qualifying entity is a member of a group where the parent prepares publicly available consolidated financial
statements which are intended to give a true and fair view and that member is included in the consolidation.
A qualifying entity, other than a subsidiary, preparing separate financial statements may also be eligible for the disclosure exemptions in respect of those separate financial statements
considered necessary to show a true and fair view;
- Any other disclosures not covered above which are required by the Companies
However, as the financial statements must show a true and fair view of the assets, liabilities, financial position and profit or loss of the entity for the reporting period if it is felt that further disclosures are required, then they should be provided where material.
As can be seen a cash flow statement is not required for these small entities.
Section 1A encourages small entities:
- where gains or losses are included in other comprehensive income to present a statement of total comprehensive income; and
- when there are transactions with equity holders to present a statement of changes in equity, or a statement of income and retained
A small entity that is a parent entity is not required to prepare consolidated financial statements
but it can choose to do so.
The FRS 102 Small Entity Provisions will apply to accounting periods beginning on or after 1 January 2016 with early adoption allowed if formats of Accounts as set out in the UK Statutory Instrument SI 2015/980 or the Irish equivalent legislation. While UK entities can avail of the Small Entity Provisions as set out in S1A, at the time of creating this guide Irish Entities can not avail of the Small Entity Provisions until the EU Directive 2013/34 in the form of the enactment of the Companies (Accounting) Act 2016 is implemented in Ireland.
Other standards affecting Section 1 where differences arise:
Section 35 – Transition to FRS 102 – Section 35 allows small entities to elect not to restate the previous year comparative financial statements to comply with Section 11 and 12; financial instruments where they have not been fair valued under old GAAP. Instead Section 11 and Section 12 can be applied from the last day of the comparative period with an adjustment posted through equity at the start of the current period and an explanation provided as to the policies applied in the comparative year.
In relation to financing transactions involving related parties treated under Section 11 i.e. intercompany loans at non market rates not repayable on demand, a small company applying Section 1A can determine the present value at the first reporting date (i.e. the start of the comparative period) and recognise an adjustment posted to equity at the start of the current period as opposed to restating the comparative year.
What do accountants need to do?
Advise clients of the fundamental change required as soon as possible and meet with client to identify the applicable reporting framework to be applied from the date of transition.
Irish Accountants need to advise clients of the ability for small entities that meet the requirement of the small companies regime to apply Section 1A once the EU Accounting Directive 2013/34 is adopted in Ireland (through the enactment of Companies (Accounting) Act 2016) which will reduce the work required on financial statements.
What do companies need to do?
Arrange for training of staff on FRS 102 and assess what reporting framework will be applicable and what impact this may have on the profit for the entity going forward.
Reference Commentary
Throughout this document old GAAP refers to previous UK and Irish GAAP and FRSSE as one unless there is a specific distinction made in each section.
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