We assist clients with all of their accounting and financial reporting needs. Accurate financial statements are a key commercial tool and our clients expect us to understand their businesses and rely upon us to keep them up-to-date with changes in legislation.
Financial reporting in the UK is a complex and evolving process, with current UK GAAP set to change for non-small entities for years ending 31 December 2015 and for small entities for years ending 31 December 2016.
International Financial Reporting Standards (IFRS)
Fully listed and AIM market companies prepare financial statements in accordance with IFRS. We can advise clients on the conversion to IFRS, including producing reports on the key changes, providing assistance with restructuring accounting records and valuations. We can also assist in drafting IFRS-compliant financial statements for certain non-listed clients.
Non-small businesses - Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)
FRS 102 was issued in March 2013 and has been through a number of revisions. The final FRS 102 that will apply for years ending 31 December 2015 has been issued and will apply to most non-small UK entities. We are able to produce reports detailing the differences between a business’s current framework and the new requirements, help them through the transition, and draft financial statements that are compliant with the new standard.
Small businesses - Financial Reporting For Smaller Entities (FRSSE) will be withdrawn
Small entities, as defined by the Companies Act, are about to undergo a considerable amount of change. With effect from 1 January 2016, the FRSSE will be withdrawn and small entities will be required to comply with the small entity requirements of FRS 102. A new section in the latest version of FRS 102 exempts small entities from most of FRS 102 disclosure requirements, but small entities will still be required to apply the recognition and measurement rules.
There are some key differences between the FRSSE and FRS 102. We can assist clients in understanding how these differences are likely to affect their financial statements so they can make decisions about their accounting policies. We can also assist with preparing company accounts under the new regime.
Very small businesses - FRS 105 ‘The Financial Reporting Standard applicable to the Micro-entities Regime’
This is a new accounting standard for the smallest companies. It can only be applied by companies and is a considerably less onerous and more simple financial reporting regime than FRS 102. It is unlikely to be the right financial reporting regime for a growing business, but it can provide a straightforward answer to financial reporting for simple asset holding companies or very small one-person businesses.