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  • IPSASB looks to add accounting for heritage items to its suite of standards

    The International Public Sector Accounting Standards Board (IPSASB) has issued a consultation paper entitled Financial Reporting for Heritage in the Public Sector. IPSASB sits under the auspices of IFAC and develops international accounting standards for the public sector.

    The paper discusses financial reporting for heritage items, in particular:

    • Identification of heritage items;
    • Whether heritage items are assets for…
    • 1 Jun 2017
  • Is the IFRS for SMEs good for SMEs?

    With small and medium-sized entities (SMEs) playing an important role in the global economy and representing over 95% of companies worldwide, the IFRS for SMEs was deemed an appropriate topic for discussion on the ICAEW symposium at the European Accounting Association – held in Valencia earlier this month. The specific question to be addressed by the panellists – representing both the academic and standard setting community…

    • 22 May 2017
  • TAXguide 09/17 – FRS 102: loans at non-market rates

    The Tax Faculty has published a new TAXguide – TAXguide 09/17 – to help members get to grips with FRS 102 changes which affect loans from individuals to a company and intercompany loans.

    Not only will businesses need to be aware of the new accounting rules, but changes introduced into Finance Act 2016 now need to be considered.

    The tax treatment of such loans will depend on: 

    • how the loan is accounted for…
    • 13 Apr 2017
  • New UK GAAP version 2.0 – proposed incremental improvements and clarifications to FRS 102

    Many of us still talk about ‘new UK GAAP’. But the truth is that it isn’t really all that new anymore as FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – the standard that forms the cornerstone of the ‘new’ regime – was issued back in March 2013 and became effective for accounting periods beginning on or after 1 January 2015.

    Just over four…

    • 30 Mar 2017
  • Supplier Payment Disclosures: The new statutory duty to report on payment practices

    The Department for Business, Energy and Industrial Strategy (BEIS) has published guidance for companies and Limited Liability Partnerships (LLPs) who need to comply with regulations establishing a new statutory reporting duty for payment practices and performance. These regulations require the UK’s largest companies and LLPs to report on a half-yearly basis details of their payment practices and policies for financial…

    • 6 Mar 2017
  • Brexit: Questions for Financial Reporting Policy Makers

    The passage of the European Union (Notification of Withdrawal) Bill through Parliament is expected to lead within weeks to the firing of the starting gun for the formal negotiations on the departure of the UK from the European Union. So now is the time for financial reporting policy makers and their constituents to start a conversation about the implications of that process for UK financial reporting.

    This is no small…

    • 3 Mar 2017
  • Non-Financial Reporting Directive: UK implementation

    The Department for Business, Energy & Industrial Strategy (BEIS) has published regulations which implement the EU Non-Financial Reporting Directive 2014/95/EU on disclosure of non-financial and diversity information by certain large undertakings and groups in their management reports. These regulations will apply to the financial years of qualifying companies and partnerships beginning on or after 1 January 2017.

    • 27 Feb 2017
  • Revised LLPs SORP reflects the new small and micro-entities regime

    Regulations issued last May significantly changed the financial reporting framework applicable to small LLPs, mirroring changes introduced for small companies a year or two previously. The most noteworthy changes include the raising of the size thresholds which determine whether an LLP qualifies as small and the creation of a new micro-entities regime for the smallest LLPs.

    Withdrawal of the FRSSE

    These changes, coupled…

    • 2 Feb 2017
  • Digital Formats for Company Information

    In December, the European Securities and Markets Authority (ESMA) published a feedback statement, providing an overview of comments received in response to its recent consultation on proposed new digital formats for EU issuers' financial reporting and setting out its proposed approach to creating a single digital format which issuers will use to report their company information.

    ESMA concluded that inline XBRL (iXBRL…

    • 30 Jan 2017
  • Amendments to FRS 101 and 102 remove requirements to notify shareholders

    FRS 101 Reduced Disclosure Framework is an optional standard available to qualifying entities and is intended to enable cost-effective financial reporting within groups, particularly those applying EU-adopted IFRS in their consolidated financial statements. Similarly, the reduced disclosures available to qualifying entities in FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland are also…

    • 17 Jan 2017
  • FRS 102 1A Small Entities - effective from January 2016

    The time is now

    Many small entities will be preparing their first set of financial statements in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland in 2017. FRS 102 was revised in September 2015 and a new section, Section 1A Small Entities, was introduced for entities classified as small. This will replace the Financial Reporting Standard for Smaller Entities (FRSSE) with…

    • 17 Jan 2017
  • Accounting for Bitcoin

    A few years ago there was a lot of talk about Bitcoin, the fledging cryptocurrency that was threatening to take the world by storm. So much so that we included a bluffer’s guide to it in the Financial Reporting Faculty’s journal, By All Accounts, back in July 2014.

    You don’t hear quite as much about Bitcoin as you once did but it certainly hasn’t gone away. Quite the opposite in fact. Recent reports suggest…

    • 11 Jan 2017
  • IASB: What's on the agenda?

    In November, the IASB published its Work Plan for 2017-2021, in addition to a Feedback Statement on the 2015 Agenda Consultation. Four key conclusions emerged from the consultation process which have been used to shape the IASB’s work programme for the next 5 years. In this short blog, we summarise the work plan, as well as offer the Faculty’s viewpoint on some of its key themes.

    Completion of projects and…

    • 9 Dec 2016
  • ICAEW draft response to FRC consultation on updating FRS 102 for changes in IFRS

    Back in September, the Financial Reporting Council published a consultation document as part of its triennial review seeking stakeholder views on its proposed approach to updating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland to reflect recent changes in IFRS.

    You can read more about these proposals – which suggest a two phase approach that would see incremental improvements & clarifications…

    • 8 Dec 2016
  • UK GAAP Checklists and Model Accounts

    With the busy year-end period approaching the Financial Reporting Faculty has seen a number of enquiries about UK GAAP resources, including model accounts and disclosure checklists from small companies and preparers of small company accounts. Under...
    • 7 Dec 2016
  • Reporting intangibles: an update

    Last month, the global accounting standard setter, the International Accounting Standards Board (IASB), published its work programme for the next five years.
    • 5 Dec 2016
  • Putting the Spotlight on Private Companies

    What are governments trying to achieve in regulating private company financial reporting? Is the IFRS for SMEs working? What are the costs and benefits of auditing private company accounts? These are just some of the questions to be explored at this year’s Information for Better Market Conference, organised by ICAEW. The overall theme of the conference, Private Company Financial Reporting, reflects the importance…

    • 17 Nov 2016
  • Brexit and financial reporting: an update

    Last July, we published an early assessment of the future impact of Brexit on UK financial reporting.
    • 11 Nov 2016
  • ESMA Survey on the Future Single Electronic Format – Deadline 21 October

    The European Securities and Markets Authority (ESMA) was empowered by Article 4 (7) of the Amended Transparency Directive to draft a regulatory technical standard (RTS) specifying the European Single Electronic Format (ESEF) format in which annual financial reports will have to be prepared and implemented across the EU.

    ESMA has already carried out a public consultation on the RTS and now intends to complement its analysis…

    • 20 Oct 2016

    Here at the Financial Reporting Faculty we regularly get very positive feedback about the quality and convenience of our webinars and we’re proud that they have been such a success. An additional benefit of the webinars is that they are recorded so you can listen to the recording should you have missed the live event, or can listen again if you want a refresher of what was said.

    Our webinar programme reflects developments…

    • 10 Oct 2016
  • Mandatory Gender Pay Gap Reporting – Public Sector Employers

    In August, the Government Equalities Office launched a consultation on mandatory gender pay gap reporting for public sector entities. This consultation is very similar to one launched in February on gender pay gap reporting for private companies.

    Given the similarities between the consultations, the main arguments made by the Financial Reporting Faculty (FRF) for the private sector remain relevant. Click here for further…

    • 6 Oct 2016
  • FRC proposes two step approach to its first triennial review of UK GAAP

    There has been quite a lot of discussion in recent months about just how far the FRC should go when undertaking its first triennial review of the new UK GAAP. Some have argued that the standard-setter should adopt a light touch, keeping changes to a minimum and doing no more than fixing known glitches and making a few clarifications here and there. Others have argued for something more radical, advocating more wholesale…

    • 3 Oct 2016
  • Small company filing options

    Many small companies currently take advantage of the option of filing abbreviated accounts with the Registrar of Companies instead of their full accounts. However, The Companies, Partnership and Groups (Accounts and Reports) Regulations 2015 remove this option for accounting periods beginning on or after 1 January 2016.

    Small companies are, however, still able to take advantage of the following filing options:

    1. They continue…
    • 26 Sep 2016
  • Accounting under the new UK GAAP for loans from directors who are also shareholders

    Many small and medium-sized businesses in the UK are financed in part by loans from directors who are also shareholders. More often than not the loans are informal, with little or no documentation setting out the terms, and interest free.

    Under ‘old’ UK GAAP the accounting treatment of these loans was relatively straightforward.

    However, the accounting treatment of some loans from directors has changed as…

    • 15 Sep 2016
  • AAA Conference 2016: US GAAP & IFRS, Prudence, and M&A accounting

    The American Accounting Association (AAA) celebrated its centenary this month by holding its annual conference in the US financial capital of New York. ICAEW were delighted to join in the celebrations by contributing to six panel sessions, four hosted and chaired by ICAEW’s technical strategy director, Robert Hodgkinson. As ever, financial reporting was at the heart of discussions, the topic of three of the panels. A…

    • 7 Sep 2016