FRS 102: Changes to recognition, measurement and disclosure
The Financial Reporting Council (FRC) has made changes to accounting standard, FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The amendments will impact the amounts recognised within the financial statements, and additional disclosures will be required. The headline differences and the headline impact on the financial statements are included…
READ MOREFRS 102: Small entity amendments
The majority of UK businesses meet the definition of a small entity within the Companies Act 2006. Small businesses adopt the recognition and measurement rules within FRS 102, and a small number of disclosures are required within their statutory financial statements which are set out in Section 1A of the Standard. This article focuses on…
READ MOREFRS 102: Accounting for leases
Historically, leases were classified as either operating or financing and the recognition and measurement requirements were dependent upon this classification. For a lessor, the good news is the impact of the amendments to FRS 102 to the classification and accounting for your leases is minimal. For a lessee, the changes are highly likely to be…
READ MOREFRS 102: Revenue recognition
Turnover, as the first reported figure in a profit and loss account or statement of comprehensive income, is of critical importance to users of financial statements. The recognition and measurement model for revenue is being altered for accounting periods commencing on or after 1 January 2026. We recommend starting the process of understanding how these…
READ MOREBanking and loan covenants guide
When it comes to lending and banking, covenants are crucial. They ensure the rights of the lender and borrower by providing specific conditions and requirements that must be met by the borrower over time. This guide will provide an in-depth exploration of what a banking and loan covenant is, their impact on borrowers, the implications…
READ MOREWhat is a public interest entity (PIE) and will it affect you?
In the often complex world of modern economics, specific entities can have substantial influence, not only when it comes to commerce, but also in our wider society. These entities, known as public interest entities (PIEs), are therefore exposed to increased regulatory scrutiny due to their significant impact on the public interest. It’s often vital that…
READ MOREA change in the quantity and scope of information requested by auditors
Many businesses with a reporting period end of 31 December are undertaking their year end procedures in preparation for their audit and have noted the increase in the quantity and scope of information that their auditors are requesting. This article provides details of the drivers for the change. The reason for the change is that…
READ MOREMerger relief – what is it?
In the UK, Part 17 of the Companies Act 2006 dictates the accounting for share capital being issued. Legislation has established a number of statutory reserves, including share premium, capital redemption reserve and share capital. The regulations restrict what statutory reserves can be used for. This article highlights the requirements of accounting for share issues…
READ MOREShare options – a brief accounting guide
Issuing share options, whether to employees, directors or suppliers, has increased in popularity. Accounting for share options, referred to as share based payments in accounting standards, can be complex. If you are considering issuing share options, you should obtain specialist accounting advice prior to issuing the options. Please note, this article does not include the…
READ MOREAdditional electronic tagging requirements for many UK listed companies
For many years, financial statements have been prepared in a paper format and approved in person by those charged with governance. Copies of these documents are sent to shareholders and to other relevant regulators. For most companies listed on the London Stock Exchange, amendments to the disclosure and transparency rules will require the primary statements…
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