Blog - Title

Blogs

  • Definition of material - IASB proposals

    At first sight the IASB’s proposals to amend the definition of ‘material’ might seem fairly straightforward. After all, feedback received by the IASB indicated that preparers generally had few difficulties in making materiality judg...
    • 22 Jan 2018
  • Brexit: the endorsement of new IFRS

    In my most recent blog on Brexit  I referred to the likelihood of the UK continuing to use IFRS after its departure from the EU. Does this mean UK listed companies just carry on applying existing IFRSs and follow any new stan...
    • 12 Jan 2018
  • Information for Better Markets conference: Is corporate reporting heading in the right direction?

    This was the question up for debate at the Financial Reporting Faculty’s ‘Information for Better Markets’ conference, held at Chartered Accountants’ Hall in December. Aimed at academics, investors, business people, accountants...
    • 10 Jan 2018
  • FRS 102: major amendments published

    The Financial Reporting Council (FRC) concluded its triennial review of UK GAAP last week by publishing amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.  In 2015 the FRC fundamentally reformed ...
    • 20 Dec 2017
  • Corporate reporting: is it heading in the right direction?

    In recent decades there have been major changes in corporate reporting. Not only have there been significant changes in accounting standards, including the adoption of IFRS in many countries, but there has also been an explosion in narrative reportin...
    • 29 Nov 2017
  • Planning for IFRS 17 Insurance Contracts - Don't leave it too late

    Three and a half years sounds like a long lead-in time for a new accounting standard, but a key message emerging from the joint Financial Reporting Faculty and Financial Services Faculty webinar on IFRS 17 Insurance Contracts is that companies are li...
    • 14 Nov 2017
  • 2017 Financial Reporting Faculty Resources – make the most of your membership

    As we approach the end of another busy year, we highlight some of the resources available to FRF members to help them keep up to date with developments. UK GAAPAlthough everyone should have made the transition to new UK GAAP by now, pockets of confus...
    • 10 Nov 2017
  • IFRS 16 Leases – are you ready?

    If the poll results from the Financial Reporting Faculty’s recent webinar are anything to go by, the answer appears to be ‘no’!

    In the webinar, IFRS 16 Leases – Making sense of the new standard, we asked the audience a number of questions with some interesting results.

    In response to the question ‘How would you describe your state of IFRS 16 readiness?’ over 70% replied that they had either not…

    • 2 Aug 2017
  • Intangible Assets: the Achilles heel of financial reporting

    There can be no doubt that business models are evolving and becoming ever more dependent on intangible assets as technology and know-how increasingly become drivers for commercial success. The magnitude and speed with which this change has taken place is reflected in the market value components of the S&P 500 companies across the last 40 years –  intangible assets representing only 17% of market value in 1975…

    • 14 Jul 2017
  • ICAEW responds to FRC’s first triennial review of FRS 102

    After several months of outreach and debate, ICAEW has now submitted its response to the FRC’s proposed improvements and clarifications to FRS 102. A summary of the FRC’s key proposals (set out in exposure draft FRED 67) can be found in our blog posted in March 2017.

    General thoughts…

    We are broadly supportive of the FRC’s proposed amendments to FRS 102, which represent the first triennial review of…

    • 7 Jul 2017
  • FRS 102 financial instruments disclosures – a source of confusion?

    FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland requires entities to disclose the carrying amounts of certain types of financial instruments analysed into different categories as prescribed by paragraph 11.41. This new note has proved to be a source of confusion for many with differing views as to what might be included or excluded. Should all financial instruments be included? Should…

    • 29 Jun 2017
  • 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