FRS 102 - Russell Brennan Keane
Choose the GAAP The New Irish & UK Financial Reporting Standard is here
Chartered Accountants
FRS 102: Where are we?
What are the key accounting differences?
It is now almost 3 years since FRS 102 was initially published but
There is more use of fair value accounting (with movements
the time to implement it is now upon us. There are 3 standards
generally recognised in profit or loss) and more choices of
which have now replaced all existing accounting standards for
accounting policies under FRS 102 than current UK and Irish
accounting periods beginning on or after 1 January 2015:
GAAP.
>> FRS 100 - Application of Financial Reporting Requirements >> FRS 101 - Reduced Disclosure Framework >> FRS 102 - The Financial Reporting Standard
Specific areas where there are changes include: >> accounting for derivatives, >> lease incentives, >> long term intercompany balances,
For those at the coal face of running finances and preparing management accounts, this is as big as it gets. For entities with
>> goodwill,
a December year end, the date of transition was 1 January 2014.
>> multi-employer group defined benefit pension schemes,
This is because year end 31 December 2015 is the first set of
>> investment properties and
financial statements to be prepared in compliance with the new standard.
These will need to be presented with 2014
comparatives.
>> deferred tax. If you have any of these items, you should consider the potential impact on your accounts as soon as possible.
Focused on Your Future
Dublin Athlone Roscommon Visit: RBK.ie
www.RBK.ie
The Options
Time to Prepare
The following decision tree may assist in helping to understand the available and best option for your organisation: It is worth noting that an entity can always choose to “trade up” to a higher financial reporting framework, e.g. move from ROI GAAP to EU IFRS if it so wishes.
It is important to remember that the implementation of FRS 102 is not a “one size fits all” and for some businesses there will be little impact while for others there will be choices over one or more areas of the financial statements.
Is the entity required (or does it opt) to apply EU IFRS? Yes
No
Apply EU IFRS?
Is the entity large or medium sized? No
Yes Apply full FRS 102 in any group financial statements
Apply FRSSE
A comprehensive and customised assessment of your business is needed to manage the transition and to ensure that any risks arising from transition are reduced. We have a specialist team that are here to assist and guide you through the transition phase to ensure you have the right kind of support. This can vary from a discussion on and an assessment of the options to implementing the changes required.
Contact Us For more information, please contact one of our specialists or give your usual RBK contact a call.
Individual Financial Statements: Is the entity a qualifying entity? No
Yes Does the entity wish to apply EU IFRS policies in its individual financial statements Yes Apply FRS 101
Apply full FRS 102 in any individual financial statements
No Apply full FRS 102 with reduced disclosures
Cathal Melia Audit Partner T: (090) 6480600 E: [email protected]
Brian Feeney Audit Partner T: (090) 6480600 E: [email protected]
Brendan Mullally Audit Partner T: (01) 6440100 E: [email protected]
Conor O’Brien Audit Partner T: (01) 6440100 E: [email protected]
How should I evaluate my options? If there is a choice to be made, a number of factors will need consideration: >> the needs and expectations of various stakeholders, including external shareholders, banks and other funding institutions >> The sector you are operating in and the need to be comparable with others in a similar sector >> Current and future financing options
Disclaimer
>> Treatments applicable to the various assets, liabilities and transactions in the financial statements >> The impact on any management agreements or profit sharing arrangements with key staff >> Tax planning opportunities
While every effort has been made to ensure the accuracy of information within this publication is correct at the time of going to print, Russell Brennan Keane do not accept any responsibility for any errors, omissions or misinformation whatsoever in this publication and shall have no liability whatsoever. The information contained in this publication is not intended to be an advice on any particular matter. No reader should act on the basis of any matter contained in this publication without appropriate professional advice.
DUBLIN
ATHLONE
ROSCOMMON
96 Lower Baggot Street Dublin 2, D02 T049, Ireland
RBK House, Irishtown, Athlone, Co. Westmeath, N37 XP52, Ireland
Castle Street, Roscommon, Co. Roscommon, F52 NR79, Ireland
Tel: +353 (0)1 644 0100
Tel: +353 (0)90 648 0600
Tel: +353 (0)90 662 6750
Chartered Accountants
FRS 102: Where are we?
What are the key accounting differences?
It is now almost 3 years since FRS 102 was initially published but
There is more use of fair value accounting (with movements
the time to implement it is now upon us. There are 3 standards
generally recognised in profit or loss) and more choices of
which have now replaced all existing accounting standards for
accounting policies under FRS 102 than current UK and Irish
accounting periods beginning on or after 1 January 2015:
GAAP.
>> FRS 100 - Application of Financial Reporting Requirements >> FRS 101 - Reduced Disclosure Framework >> FRS 102 - The Financial Reporting Standard
Specific areas where there are changes include: >> accounting for derivatives, >> lease incentives, >> long term intercompany balances,
For those at the coal face of running finances and preparing management accounts, this is as big as it gets. For entities with
>> goodwill,
a December year end, the date of transition was 1 January 2014.
>> multi-employer group defined benefit pension schemes,
This is because year end 31 December 2015 is the first set of
>> investment properties and
financial statements to be prepared in compliance with the new standard.
These will need to be presented with 2014
comparatives.
>> deferred tax. If you have any of these items, you should consider the potential impact on your accounts as soon as possible.
Focused on Your Future
Dublin Athlone Roscommon Visit: RBK.ie
www.RBK.ie
The Options
Time to Prepare
The following decision tree may assist in helping to understand the available and best option for your organisation: It is worth noting that an entity can always choose to “trade up” to a higher financial reporting framework, e.g. move from ROI GAAP to EU IFRS if it so wishes.
It is important to remember that the implementation of FRS 102 is not a “one size fits all” and for some businesses there will be little impact while for others there will be choices over one or more areas of the financial statements.
Is the entity required (or does it opt) to apply EU IFRS? Yes
No
Apply EU IFRS?
Is the entity large or medium sized? No
Yes Apply full FRS 102 in any group financial statements
Apply FRSSE
A comprehensive and customised assessment of your business is needed to manage the transition and to ensure that any risks arising from transition are reduced. We have a specialist team that are here to assist and guide you through the transition phase to ensure you have the right kind of support. This can vary from a discussion on and an assessment of the options to implementing the changes required.
Contact Us For more information, please contact one of our specialists or give your usual RBK contact a call.
Individual Financial Statements: Is the entity a qualifying entity? No
Yes Does the entity wish to apply EU IFRS policies in its individual financial statements Yes Apply FRS 101
Apply full FRS 102 in any individual financial statements
No Apply full FRS 102 with reduced disclosures
Cathal Melia Audit Partner T: (090) 6480600 E: [email protected]
Brian Feeney Audit Partner T: (090) 6480600 E: [email protected]
Brendan Mullally Audit Partner T: (01) 6440100 E: [email protected]
Conor O’Brien Audit Partner T: (01) 6440100 E: [email protected]
How should I evaluate my options? If there is a choice to be made, a number of factors will need consideration: >> the needs and expectations of various stakeholders, including external shareholders, banks and other funding institutions >> The sector you are operating in and the need to be comparable with others in a similar sector >> Current and future financing options
Disclaimer
>> Treatments applicable to the various assets, liabilities and transactions in the financial statements >> The impact on any management agreements or profit sharing arrangements with key staff >> Tax planning opportunities
While every effort has been made to ensure the accuracy of information within this publication is correct at the time of going to print, Russell Brennan Keane do not accept any responsibility for any errors, omissions or misinformation whatsoever in this publication and shall have no liability whatsoever. The information contained in this publication is not intended to be an advice on any particular matter. No reader should act on the basis of any matter contained in this publication without appropriate professional advice.
DUBLIN
ATHLONE
ROSCOMMON
96 Lower Baggot Street Dublin 2, D02 T049, Ireland
RBK House, Irishtown, Athlone, Co. Westmeath, N37 XP52, Ireland
Castle Street, Roscommon, Co. Roscommon, F52 NR79, Ireland
Tel: +353 (0)1 644 0100
Tel: +353 (0)90 648 0600
Tel: +353 (0)90 662 6750
