PREPARING FOR FRS 102 THE NEW UK...

Transition Checklists & Appendices

PREPARING FOR FRS 102 – THE NEW UK GAAP

market leaders for financial training

Preparing for FRS 102 – the New UK GAAP

Transition Checklist and Appendices

© UK Training (Worldwide) Limited 1

www.uktraining.info

Transition Checklists and Appendices

This document is used during the presentation of the seminar: Preparing for FRS 102 – the New UK GAAP It is subject to copyright law and should not be reproduced by any unauthorised person for their own use, selling on to a third person or for presentation to other people. UK Training (Worldwide) Limited 17 Duke Street Formby L37 4AN e-mail:[email protected] Telephone: 01704 878988 Facsimile: 01704 832124 www.uktraining.info

http://www.uktraining.info/




www.uktraining.info





www.uktraining.info

CONTENTS

Page

Transition Checklist

Checklist 1: Project Plan 5

Checklist 2: Which sections of FRS 102 apply? 7

Checklist 3: Accounting policy choice checklist 10

Checklist 4: Transition exemption choices 12

Appendix 1: 14

FRS and UITF abstracts in issue at 1 July 2013 replaced by FRS 102

Appendix 2: 16

Extract from Companies Act formats

Appendix 3: 18

Structure of FRS 102

Appendix 4: 19

Scope of relevant sections





www.uktraining.info





www.uktraining.info

TRANSITION CHECKLIST

CHECKLIST 1: PROJECT PLAN

These checklists can be completed for each entity within the group or for the group as a whole.

Step Action Guidance Sign off

1. Which GAAP are you transitioning to?

IFRS

FRS 101

FRS 102

FRS 102 plus reduced disclosures

FRSSE / FRS 102 provisions applicable to small companies

2. Identify first FRS 102 period end Accounting period commencing on or after 1 January 2015

3. Identify date of transition The beginning of the earliest period for which an entity presents full comparative information in a given standard in its first financial statements that comply with that standard.

4. Decide on form and content of financial statements

Old UK GAAP or FRS 102 terminology? OLD / FRS 102

Single or double income statement? SINGLE / DOUBLE

Cash flow statement required? YES / NO

Statement of income and retained earnings? YES / NO

Group accounts required? YES / NO

5. Identify relevant sections of FRS 102

Complete transition checklist 2

6. Consider accounting policy choices


7. Consider available exemptions and decide whether or not to take advantage


8. Review agreements, contracts and other issues which may need to be amended before transition

Leases

Employment contracts

Financial instruments

Loan agreement

9. Restate the balance sheet at the date of transition applying the recognition and measurement of principles and taking account of the exemptions adopted at step 5, ensuring that the exceptions in section 35 are complied with. Note: tax effects can be dealt with here or in step 11 below.

Recognise all assets and liabilities whose recognition is required by FRS 102

Exclude assets or liabilities which would not be recognised under FRS 102

Reclassify items under UK GAAP such that they are classified as under FRS 102

Measure all assets and liabilities according to the requirements of FRS 102

Adjust net effect against opening equity (i.e. equity at date of transition.)

10. Restate the comparative figures on the same basis as in step 8. Note: tax effects can be dealt with here or in step 11 below.

See above

11. Prepare draft figures for the See above





www.uktraining.info

current year in accordance with FRS 102 and taking into account the exemptions and exceptions identified above.

12. Prepare the tax computations for the first year of adoption of FRS 102

Restate current and deferred tax liabilities at date of transition (see 8 above).

Restate tax charge and tax liabilities in adjusted comparative figures (see 9 above).

Compute tax based on taxable profit for the year including adjustment income or expense as appropriate (see 10 above).

Compute deferred tax charge and liability for first year of compliance with FRS 102

13. Finalise financial statements incorporating tax charges and balances from above steps.

14. Prepare the required reconciliations and explanation required by Section 35.

Prepare reconciliation between equity at the date of transition and end of comparative period under old GAAP and FRS 102

Prepare reconciliation between the profits for the year as reported under old GAAP, and FRS 102

Explain transition





www.uktraining.info

CHECKLIST 2 – WHICH SECTIONS OF FRS 102 APPLY

This checklist is designed to identify whether sections of FRS 102 apply.

Section Subject Reference Sign off

1 Scope Section 1 YES

2 Concepts and pervasive principles Section 2 YES

3 Financial statement presentation Section 3 YES

4 Statement of financial position Section 4 YES

5 Statement of comprehensive income and income statement Section 5 YES

6 Statement of changes in equity Section 6 YES

7 Statement of cash flows Section 7 YES

8 Notes to the financial statements Section 8 YES

Each of the above will apply to all entities

9 Consolidated and separate financial statements

9.1 Does the entity have an investment in subsidiaries requiring the preparation of group accounts?

YES / NO

9.2 Does the entity have any intermediate payment arrangements?

9.33 – 9.38 YES / NO

10 Accounting policies Section 10 YES

Will apply to all entities

11 Basic financial instruments

11.1 Does entity have any basic financial instruments at amortised cost?

Section 11 YES / NO

11.2 Does entity have any investments in non-convertible preference shares and non-puttable ordinary shares

11.14(d) YES / NO

11.3 Does entity have any debt instruments which can be designated as fair value through profit and loss account if doing this results in more relevant information

11.14(b) YES / NO

12 Other financial instruments issues

12.1 Does entity have any non-basic financial instruments e.g. Derivative financial instrument or complex loans

Section 12 YES / NO

12.2 Does the entity use hedging instruments as part of a hedging strategy?

12.15 – 12.25 and FRED 52

YES / NO

13 Inventories

13.1 Does entity have inventories? Section 13 YES / NO

14 Investments in associates

14.1 Does entity have investments in associates? Section 14 YES / NO

15 Investments in joint ventures

15.1 Does the entity have any investments in joint ventures? Section 15 YES / NO

16 Investment property

16.1 Does entity have Investment property? Section 16 YES / NO

16.2 Is any investment property Mixed use property? 16.4 YES / NO

16.3 Is any investment property used for the provision of social benefits?

16.3A YES / NO

17 Property plant and equipment

17.1 Does entity have any property, plant and equipment? Section 17 YES / NO

18 Intangible assets other than goodwill

18.1 Does entity have any acquired intangible assets? Section 18 YES / NO

18.2 Does entity have any internally generated intangibles? 18.8A– 18.D & 18.10

YES / NO

18.3 Is the entity involved in research and development? 18.8E-18.8K YES / NO

19 Business combinations and goodwill





www.uktraining.info

19.1 Has entity made any acquisitions before the date of transition?

Section 19 YES / NO

19.2 Has entity been involved in any group reconstructions? 19.27 – 19.33 YES / NO

20 Leases

20.1 Does entity have finance leases as lessee? 20.9 – 20.14 YES / NO

20.2 Does entity have operating leases as lessee? 20.15 – 20.16 YES / NO

20.3 Does entity have finance leases as lessor? 20.17 -20.23 YES / NO

20.4 Does entity have operating leases as lessor? 20.24 – 20.31 YES / NO

20.4 Has entity been involved in sale and lease back transactions? 20.32 – 20.35 YES / NO

20.6 Did entity receive any lease incentives? 20.15A YES / NO

21 Provisions and contingencies

21.1 Is entity required to include any provisions other than for deferred tax?

21. 1 – 21.11, 21.14 – 21.17A plus appendix

YES / NO

21.2 Does entity have any onerous contracts? 21.11A YES / NO

21.3 Does the entity expect to make future operating losses? 21.11B YES / NO

21.4 Is the entity considering restructuring? 21.11C & D YES / NO

21.5 Does entity have any contingent liabilities? 21.12 YES / NO

21.6 Does entity have any contingent assets? 21.13 YES / NO

22 Liabilities and equity

22.1 Does entity have liabilities and equity? Section 22 YES / NO

22.2 Does entity have any convertible debt? 22.13 – 22.15 YES / NO

22.3 Does entity have any Treasury shares? 22.16 YES / NO

22.4 Does entity have Non-controlling interest? 22.19 YES / NO

22.5 Did entity issue equity? 22.7 – 22.10 YES / NO

22.6 Did entity make any distributions? 22.17 – 18 YES / NO

23 Revenue

23.1 General principles 23.1 – 23.18 and 23.30 -23.32

YES

23.2 Does entity generate revenue on deferred payment terms? 23.5 YES / NO

23.3 Does entity have any transactions with more than one component?

23.8 – 23.9 YES / NO

23.4 Does entity sell goods? 23.10 – 23.13 YES / NO

23.5 Does entity render of services? 23.14 – 23.16 YES / NO

23.6 Does entity have any construction contracts? 23.17 – 23.27 YES / NO

23.7 Does entity have any interest receivable, royalties and dividends receivable?

23.28 – 23.29 YES / NO

24 Government grants

24.1 Has the entity received any government grants? Section 24 YES / NO

25 Borrowing costs

25.1 Does entity wish to adopt a policy of capitalising borrowing costs?

Section 25 YES / NO

26 Share based payments

26.1 Does entity have any equity settled share-based payment transactions?

26.3 – 26.13 YES / NO

26.2 Does entity have any cash-settled share-based payment transactions?

26.3 – 26.6 & 26.14

YES / NO

26.3 Were there any modifications, cancellations and settlements?

26.13 YES / NO

26.4 Do the share based payment transactions carry cash alternatives?

26.15 YES / NO

26.5 Are there any group plans? 26.16 YES / NO

26.6 Are there any government mandated plans? 26.17 YES / NO





www.uktraining.info

27 Impairment of assets

27.1 Impairment review of inventories annually is required 27.2 – 27.4 YES

27.2 Is there evidence of impairment of Goodwill? 27.5 – 27.23 & 27.24 – 27

YES / NO

27.3 Is there evidence of impairment of Other intangible assets 27.5 – 27.23 YES / NO

27.4 Is there evidence of impairment of Property plant and equipment?

27.5 – 27.23 YES / NO

27.5 Is there evidence of a reversal of an impairment loss? 27.28 – 27.31 YES / NO

28 Employee benefits

28.1 Does entity have employment costs? 28.1 – 28.5 YES / NO

28.2 Does entity have any accumulating short term compensated absences

28.6 – 28.7 YES / NO

28.3 Does entity have profit-sharing or bonus plans? 28.8 YES / NO

28.4 Does entity provide pension benefits under a defined contribution pension plan

28.9- 28.13A YES / NO

28.5 Does entity provide pension benefits under a defined benefit pension plan

28.9 – 28.12 & 28.14 – 28.28

YES / NO

28.6 Did the entity provide any termination benefits? 28.31 – 28.37 YES / NO

28.7 Does entity provide pension benefits under a multi-employer plan

28.38 YES / NO

28.9 Does entity provide pension benefits under a group plan 28.38 YES / NO

29 Income tax

29.1 Is the entity liable to taxation? Section 29 YES / NO

30 Foreign currency translation

30.1 Does the entity have any foreign currency transactions? 30.2 – 30.11 YES / NO

30.2 Does the entity have an investment in a foreign operation? 30.12 – 30.13 YES / NO

30.3 Did entity change its functional currency? 30.14 – 30.16 YES / NO

30.4 Does entity use a presentation currency other than its functional currency?

30.17- 30.23 YES / NO

31 Hyperinflation

31.1 Does the entity operate in a hyperinflationary economy? Section 31 YES / NO

32 Events after the end of the reporting period

32.1 Will apply to all entities YES

33 Related party disclosures

33.1 Will apply to all entities YES

34 Specialised activities

Does entity operate in any of the following areas:

34.1 Agriculture? 34.2 – 34.10A YES / NO

34.2 Extractive industries? 34.11 – 34.11C YES / NO

34.3 Service concession arrangements? 34.12 – 34.16 YES / NO

34.4 Financial institution? 34.17 – 34.33 YES / NO

34.5 Retirement benefit plans? 34.34 – 34.48 YES / NO

34.6 Heritage assets? 34.49 – 34.56 YES / NO

34.7 Funding commitments? 34.57 – 34.63 YES / NO

34.8 Public benefit entity incoming resources from non-exchange transactions?

PBE 34.64 – 34.66 YES / NO

34.9 Public benefit entity combinations? PBE 34.75 – 34.86 YES / NO

34.10 Public benefit entity concessionary loans? PBE 34.87- 34.97 YES / NO





www.uktraining.info

CHECKLIST 3 – ACCOUNTING POLICY CHOICE CHECKLIST

1 FRS 102 Section 9 – Treatment in separate financial statements

1.1 Has entity an investment in Subsidiaries? YES / NA

Cost less impairment

Fair value with changes in other comprehensive income

Fair value with changes in fair value with changes in profit and loss account

1.2 Has entity an investment in Associates? YES / NA



Fair value with changes in fair value with changes in

1.3 Has entity an investment in Joint ventures? YES /NA



Fair value with changes in fair value with changes in

2 FRS 102 Section 11 – treatment of certain debt instruments

2.1 Does the entity have any debt instruments which satisfy the requirements of section 11.14 (b) permitting inclusion at fair value through profit and loss as it provides more relevant information?

YES /NA

Effective interest method

Fair value through profit and loss account

3 FRS 102 – other financial instrument issues

3.1 Has entity any non-basic debt instruments? YES /NA

Follow Section 11 and 12

Recognition and measurement of IAS 39 and disclosure requirements of FRS 102 sections 11 and 12

Recognition and measurement of IFRS 9 and disclosure requirements of FRS 102 sections 11 and 12

3.2 Does entity have any hedging instruments? YES /NA

Apply hedge accounting

Do not apply hedge accounting

4 FRS 102 – Section 14 Investments in associates

4.1 Is the entity a non-parent investor with an investment in an associate? YES / NA

Cost model

Fair value model

Fair value with changes in profit and loss account

5 FRS 102 – Section 15 Investments in joint venture

5.1 Is the entity a non-parent investor with an investment in a jointly controlled entity?

YES /NA

Cost model

Fair value model

Fair value with changes in profit and loss account

6 FRS 102 – Section 17 Property, plant and equipment YES / NA

6.1 For each class of property plant and equipment, the entity has an accounting policy choice after initial recognition.

Cost model

Revaluation model





www.uktraining.info

7 FRS 102 – Section 18 Intangible assets other than goodwill YES / NA

6.2 For each class of intangible assets the entity has an accounting policy choice, provided that reliable valuations can be made.

Cost model

Revaluation model

8 FRS 102 – Section 21 Provisions and contingencies

8.1 Does the entity have any financial guarantee contracts? YES / NA

FRS 102 Section 21

Entity has chosen to apply IAS 39

Entity has elected under FRS 103 to continue insurance contract accounting

9 Government grants YES / NA

9.1 For each class of government grants, the entity has an accounting policy choice for recognition and measurement

Performance model

Accrual model

10 FRS 102 Section 25 Borrowing costs YES / NA

10.1 Inventory Capitalise

Not capitalise

10.2 Property, plant and equipment Capitalise

Not capitalise

11 FRS 102 Section 30 Foreign currency translation YES / NA

11.1 Does entity wish to use a presentation currency other than its functional currency?

Yes

No

12 FRS 102 Section 34

12.1 Does the entity have any biological assets and / or related biological produce?

YES / NA

Fair value model

Cost model

12.2 Does the entity have any public benefit entity concessionary loans? YES/NA

Follow sections 11 & 12

Follow section 34.90 – 34.97





www.uktraining.info

CHECKLIST 4: TRANSITION EXEMPTION CHOICES

The questions in the checklist should be answered in relation to the date of transition. If it is impracticable to restate at the date of transition FRS 102 35.11 requires the restatement and exemptions to be considered at the earliest date it is practicable to do so.

Ref. Exemption Choice

1. Has entity made any business combinations, including group reconstruction before the date of transition

YES / NO

Restate under Section 19

Continue under old GAAP. May not continue with old GAAP for any business combinations after the date of any acquisition which is restated under S 19.

2. Does entity have Share based payments? YES /NO

Restate under Section 26

Continue under old GAAP

3. Does entity wish to use fair value as deemed cost?

Property plant and equipment YES / NO

Investment property YES / NO

Intangible asset YES / NO

4. Does entity wish to use revaluation as deemed cost? (If No restate under FRS 102)

Property plant and equipment YES / NO

Investment property YES / NO

Intangible asset YES / NO

5. Does the entity have an investment in subsidiaries, associates or joint ventures?

YES / NO

Subsidiaries Cost under Section 9

Carrying value under previous GAAP as deemed cost

Associates Cost under Section 9


Joint ventures Cost under Section 9


6. Does the entity have any compound financial instruments where the liability is no longer outstanding at the date of transition?

YES / NO

Separate

Do not separate

7. Does the entity have any Service concession arrangements YES / NO

Restate under FRS 102 34.12E to 34.16A

Continue under old GAAP

8. Does the entity have any Extractive activities – where accounted for exploration and development costs for oil and gas in development phases?

YES / NO

Follow FRS 102 34.11

Follow transitional provisions in 35.10 (j)

9. Does entity have an arrangements containing a lease? YES / NO

For each lease determine whether an arrangement constitutes a lease

At date of commencement of lease

At date of transition

10. Does entity have to include an initial measurement of the cost of decommissioning in the cost of property plant and equipment?

YES / NO





www.uktraining.info

Measure at date obligation arose

Measure at date of transition

11. Is the entity a dormant company where there are no transactions to record other than might arise on restatement to FRS 102?

YES / NO

Retain old accounting policies

Adopt FRS 102

12. Does entity have deferred development costs under SSAP 13 YES / NO

Restate under FRS 10 2 Section 18

Use carrying value under SSAP 13 as deemed cost at date of transition

13. Does entity wish to capitalise borrowing costs? YES / NO

For each category of asset, property plant and equipment or inventory, accounting policy choice between

Capitalise from date of borrowing

Capitalise from date of transition

14. Did entity receive any lease incentives where the term of lease commenced before date of transition?

YES / NO

Restate under Section 20.15A over term of lease

Continue under UITF 28 over shorter of lease term and date rent reset to market rate

15. Did the entity enter any public benefit combinations before the date of transition?

Restate under PBE 34.75 to PBE 34.86

Continue under old GAAP – may not continue for any later business combinations once any business combination restated

16. Does subsidiary become a first time adopter later than its parent? YES / NO

Measure at the carrying amounts that would be included in the consolidate accounts based on the parent’s date of transition

Measure at the carrying amounts required by FRS 102 at the subsidiary’s date of transition

17. Does the entity have any previously recognised debt instruments which meet the criteria for designating at fair value through profit and loss account? (see FRS 11.14 and 11.8)

YES / NO

Restate based on designation at date of initial recognition

Designate at date of transition





www.uktraining.info

APPENDICES

APPENDIX 1 – FRS AND UITF ABSTRACTS IN ISSUE AT 1 JULY 2013 REPLACED BY FRS 102

SSAP 4 Accounting for government grants

SSAP 5 Accounting for value added tax

SSAP 9 Stocks and long-term contracts

SSAP 13 Accounting for research and development

SSAP 20 Foreign currency translation

SSAP 21 Accounting for leases and hire purchase contracts

SSAP 25 Segmental reporting

FRS 1 Cash flow statements

FRS 2 Accounting for subsidiary undertakings

FRS 3 Reporting financial performance

FRS 4 Capital instruments

FRS 5 Reporting the substance of transactions

FRS 6 Acquisitions and mergers

FRS 7 Fair values in acquisition accounting

FRS 8 Related party disclosures

FRS 9 Associates and joint ventures

FRS 10 Goodwill and intangible assets

FRS 11 Impairment of fixed assets and goodwill

FRS 12 Provisions, contingent liabilities and contingent assets

FRS 13 Derivatives and other financial instrument disclosures

FRS 15 Tangible fixed assets

FRS 16 Current tax

FRS 17 Retirement benefits

FRS 18 Accounting policies

FRS 19 Deferred Tax

FRS 20 (IFRS 2) Share based payments

FRS 21 (IAS 10) Events after the balance sheet date

FRS 22 (IAS 33) Earnings per share

FRS 23 (IAS 21) The effects of changes in foreign exchange rates

FRS 24 (IAS 29) Financial reporting in hyperinflationary economies

FRS 25 (IAS 32) Financial instruments: Presentation

FRS 26 (IAS 39) Financial instruments: Recognition and measurement

FRS 28 Corresponding amounts

FRS 29 (IFRS 7) Financial instruments; Disclosures





www.uktraining.info

FRS 30 Heritage assets

UITF 4 Presentation of long-term debtors in current assets

UITF 5 Transfers from current assets to fixed assets

UITF 9 Accounting for operations in hyperinflationary economies

UITF 11 Capital instruments: issuer call options

UITF 15 Disclosure of substantial acquisitions

UITF 19 Tax on gains and losses on foreign currency borrowings that hedge an investment in a foreign enterprise

UITF 21 Accounting issues arising from the proposed introduction of the euro

UITF 22 The acquisition of a Lloyd’s business

UITF 23 Application of the transitional rules in FRS 15

UITF 24 Accounting for start-up costs

UITF 25 National Insurance contributions on share option gains

UITF 26 Barter transactions on advertising

UITF 27 Revision to estimates of the useful economic life of goodwill and intangible assets

UITF 28 Operating lease incentives

UITF 29 Website development costs

UITF 31 Exchanges of businesses or other non-monetary assets for an interest in a subsidiary, joint venture or associate

UITF 32 Employee benefit trusts and other intermediate arrangements

UITF 34 Pre-contract costs

UITF 35 Death-in-service and incapacity benefits

UITF 36 Contracts for the sale of capacity

UITF 38 Accounting for ESOP trusts

UITF 39 (IFRIC 2) Member’s shares in co-operative entities and similar instruments

UITF 40 Revenue recognition and service contracts

UITF 41 Scope of FRS 20 (IFRS 2)

UITF 42 Reassessment of embedded derivatives

UITF 43 The interpretation of equivalence for the purposes of section 228A of the Companies Act 1985

UITF 44 (IFRIC 11) FRS 20 (IFRS 2) Groups and treasury share transactions

UITF 45 (IFRIC 6) Liabilities arising from participating in a specific market – waste electrical and electronic equipment

UITF 46 (IFRIC 16) Hedges of a net investment in a foreign operation

UITF 47 (IFRIC 19) Extinguishing financial liabilities with equity instruments

UITF 48 Accounting implications of the replacement of the retail prices index with the consumer price index with the consumer prices index for retirement benefits





www.uktraining.info

APPENDIX 2 – EXTRACT FROM COMPANIES ACT FORMATS

Balance sheet formats A. Called up share capital not paid (1) B. Fixed assets I. Intangible assets 1. Development costs 2. Concessions, patents, licences, trademarks and similar rights and assets (2) 3. Goodwill (3) 4. Payments on account II. Tangible assets 1. Land and buildings 2. Plant and machinery 3. Fixtures, fittings, tools and equipment 4. Payments on account and assets in course of construction III. Investments 1. Shares in group undertakings 2. Loans to group undertakings 3. Participating interests 4. Loans to undertakings in which the company has a participating interest 5. Other investments other than loans 6. Other loans 7. Own shares (4) C. Current assets I. Stocks 1. Raw materials and consumables 2. Work in progress 3. Finished goods and goods for resale 4. Payments on account II. Debtors (5) 1. Trade debtors 2. Amounts owed by group undertakings 3. Amounts owed by undertakings in which the company has a participating interest 4. Other debtors 5. Called up share capital not paid (1) 6. Prepayments and accrued income (6) III. Investments 1. Shares in group undertakings 2. Own shares (4) 3. Other investments IV. Cash at bank and in hand D. Prepayments and accrued income (6) E. Creditors: amounts falling due within one year 1. Debenture loans (7) 2. Bank loans and overdrafts 3. Payments received on account (8) 4. Trade creditors 5. Bills of exchange payable 6. Amounts owed to group undertakings 7. Amounts owed to undertakings in which the company has a participating interest 8. Other creditors including taxation and social security (9) 9. Accruals and deferred income (10) F. Net current assets (liabilities) (11)





www.uktraining.info

G. Total assets less current liabilities H. Creditors: amounts falling due after more than one year 1. Debenture loans (7) 2. Bank loans and overdrafts 3. Payments received on account (8) 4. Trade creditors 5. Bills of exchange payable 6. Amounts owed to group undertakings 7. Amounts owed to undertakings in which the company has a participating interest 8. Other creditors including taxation and social security (9) 9. Accruals and deferred income (10) I. Provisions for liabilities 1. Pensions and similar obligations 2. Taxation, including deferred taxation 3. Other provisions J. Accruals and deferred income (10) K. Capital and reserves I. Called up share capital (12) II. Share premium account III. Revaluation reserve IV. Other reserves 1. Capital redemption reserve 2. Reserve for own shares 3. Reserves provided for by the articles of association 4. Other reserves V. Profit and loss account Profit and loss account formats – Format 1 1. Turnover 2. Cost of sales (14) 3. Gross profit or loss 4. Distribution costs (14) 5. Administrative expenses (14) 6. Other operating income 7. Income from shares in group undertakings 8. Income from participating interests 9. Income from other fixed asset investments (15) 10. Other interest receivable and similar income (15) 11. Amounts written off investments 12. Interest payable and similar charges (16) 13. Tax on profit or loss on ordinary activities 14. Profit or loss on ordinary activities after taxation 15. Extraordinary income 16. Extraordinary charges 17. Extraordinary profit or loss 18. Tax on extraordinary profit or loss 19. Other taxes not shown under the above items 20. Profit or loss for the financial year





www.uktraining.info

APPENDIX 3 – STRUCTURE OF FRS 102

Section 1 -Scope

Section 2 – Concepts and Pervasive Principles

Section 3 – Financial Statement Presentation

Section 4 – Statement of Financial Presentation

Section 5 – Statement of Comprehensive Income and Income Statement o Appendix: Example showing presentation of discontinued operations

Section 6 – Statement of Changes in Equity and Statement of Retained Earnings

Section 7 – Statement of Cash Flows

Section 8 – Notes to the Financial Statements

Section 9 – Consolidated and Separate Financial Statements

Section 10 – Accounting Policies, Estimates and Errors

Section 11 – Basic Financial Instruments

Section 12 – Other Financial Instruments Issues

Section 13 – Inventories

Section 14 – Investments in Associates

Section 15 – Investments in Joint Ventures

Section 16 – Investment Property

Section 17 – Property, plant and equipment

Section 18 – Intangible Assets other than Goodwill

Section 19 – Business Combinations and Goodwill

Section 20 – Leases

Section 21 – Provisions and Contingencies o Appendix: Examples of recognising and measuring provisions

Section 22 – Liabilities and Equity o Appendix: Example of the issuer’s accounting for convertible debt

Section 23 – Revenue o Appendix: Examples of revenue recognition

Section 24 – Government Grants

Section 25 – Borrowing Costs

Section 26 – Share-based payments

Section 27 – Impairment of Assets

Section 28 – Employee Benefits

Section 29 – Income Tax

Section 30 – Foreign Currency Translation

Section 31 – Hyperinflation

Section 32 – Events after the Reporting Period

Section 33 – Related Party Disclosures

Section 34 – Specialised Activities o Agriculture o Extractive industries o Service concession arrangements o Financial institutions o Retirement benefit plans o Heritage assets o Funding commitments o Incoming resources from non-exchange transactions o Public benefit entity combinations o Public benefit entity concession loans

Section 35 – Transition





www.uktraining.info

APPENDIX 4: SCOPE OF RELEVANT SECTIONS

Note that within the FRS these headings are not necessarily in the same order, and there are minor differences in the wording, hence their inclusion verbatim.

It is particularly important to note where a financial instrument if wholly exclude, where the exclusion applies only to the holder or issuer, or where the exclusion is otherwise limited.

Scoped out of section 11 Scoped out of section 12 Scoped out of section 22

Those covered by Section 11.

Investments in subsidiaries, associates and joint ventures that are accounted for in accordance with Section 9 Consolidated and Separate Financial Statements, Section 14 Investments in Associates or Section 15 Investments in Joint Ventures.

Investments in subsidiaries (see Section 9 Consolidated and Separate Financial Statements), associates (see Section 14 Investments in Associates) and joint ventures (see Section 15 Investments in Joint Ventures).

Investments in subsidiaries, associates and joint ventures that are accounted for in accordance with Section 9 Consolidated and Separate Financial Statements, Section 14 Investments in Associates or Section 15 Investments in Joint Ventures

Financial instruments that meet the definition of an entity's own equity and the equity component of compound financial instruments issued by the reporting entity that contain both a liability and an equity component (see Section 22 Liabilities and Equity).

Financial instruments that meet the definition of an entity's own equity and the equity component of compound financial instruments issued by the reporting entity that contain both a liability and an equity component (see Section 22 Liabilities and Equity).

Leases, to which Section 20 Leases applies. However, the derecognition requirements in paragraphs 11.33 to 11.35 and impairment accounting requirements in paragraphs 11.21 to 11.26 apply to derecognition and impairment of receivables recognised by a lessor and the derecognition requirements in paragraphs 11.36 to 11.38 apply to payables recognised by a lessee arising under a finance lease. Section 12 applies to leases with characteristics specified in paragraph 12.3(f).

Leases (see Section 20 Leases) unless the lease could, as a result of non-typical contractual terms, result in a loss to the lessor or the lessee

Employers' rights and obligations under employee benefit plans, to which Section 28 Employee Benefits applies, although paragraphs 11.27 to 11.32 do apply in determining the fair value of plan assets.

Employers' rights and obligations under employee benefit plans (see Section 28 Employee Benefits).

Employers' rights and obligations under employee benefit plans, to which Section 28 Employee Benefits applies.

Financial instruments, contracts and obligations to which Section 26 Share-based Payment applies, and contracts within the scope of paragraph 12.5.

Financial instruments, contracts and obligations to which Section 26 Share-based Payment applies, except for contracts within the scope of paragraph 12.5.

Financial instruments, contracts and obligations under share-based payment transactions to which Section 26 applies, except that paragraphs 22.3 to 22.6 shall be applied to treasury shares issued, purchased, sold, transferred or cancelled in connection with employee share option plans, employee share purchase plans, and all other share-based payment arrangements.

Insurance contracts (including reinsurance contracts) that the entity issues and reinsurance contracts that the entity holds (see FRS 103 Insurance Contracts). [see note 1]

Insurance contracts (including reinsurance contracts) that the entity issues and reinsurance contracts that the entity holds (see FRS 103 Insurance Contracts). [see note 1]

Insurance contracts (including reinsurance contracts) that an entity issues and reinsurance contracts that it holds (see FRS 103 Insurance Contracts). [see note 1]

Financial instruments issued by an entity Financial instruments issued by an entity Financial instruments with a discretionary





www.uktraining.info

with a discretionary participation feature (see FRS 103 Insurance Contracts). [see note 2]

with a discretionary participation feature (see FRS 103). [see note 2]

participation feature that an entity issues (see FRS 103). [see note 2]

Reimbursement assets accounted for in accordance with Section 21 Provisions and Contingencies.

Reimbursement assets accounted for in accordance with Section 21 Provisions and Contingencies.

Financial guarantee contracts (see Section 21).

Financial guarantee contracts (see Section 21).

Financial guarantee contracts (see Section 21 Provisions and Contingencies).

Contracts for contingent consideration in a business combination (see Section 19 Business Combinations and Goodwill). This exemption applies only to the acquirer

Contracts for contingent consideration in a business combination (see Section 19 Business Combinations and Goodwill). This exemption applies only to the acquirer.

Any forward contract between an acquirer and a selling shareholder to buy or sell an acquiree that will result in a business combination at a future acquisition date. The term of the forward contract should not exceed a reasonable period normally necessary to obtain any required approvals and to complete the transaction.

Note 1 Both the issuer and the holder are required to apply FRS 103 to such instruments

Note 2 The issuer, only of such instruments is required to apply FRS 102 to such instruments





www.uktraining.info


www.uktraining.info

UK Training (Worldwide) Limited

Registration Number 02695623 England and Wales

Registered Office 17 Duke Street,

Formby L37 4AN

Telephone: 01704 878988

Facsimile: 01704 832124

E-mail: [email protected]


Date post:	12-Mar-2018
Category:	Documents
Upload:	lytu
View:	217 times
Download:	1 times

PREPARING FOR FRS 102 THE NEW UK...

Documents