With relatively little fanfare, FRS 102 comes into force for accounting periods commencing on or after 1st January 2015. This is a fundamental change in the way in which financial accounts are prepared for companies of all sizes which can result in unanticipated consequences from lower tax bills, to dividends suddenly becoming illegal.
Are you ready?
Our most recent seminars on FRS 102 have revealed that many companies, large and small, are not prepared for new UK GAAP. The new standards bring with them a selection of choices and opportunities alongside the time and cost that will be involved in implementation.
Some of our clients are considering whether to prepare financial statements to a different date to defer implementation of the new standards. This will give them longer to consider some of the choices available to them like whether they want to do a one off valuation at the transition date to boost the balance sheet.
Others are considering early adoption of FRS 102 to take advantage of the reduced taxable income that can arise in some situations in the year of implementation.
It’s not an easy decision when weighing up the impact on taxable income, loan covenants and distributable profits. Especially when it’s not just for one year. If you don’t feel ready and would like to know more we will be running additional seminars in the new year.
To book a place call Jenny Frost on 0845 177 5500 or contact us on-line.