Is your company ready for FRS 102? – Transition to FRS 102
All existing users of Irish and UK GAAP will be required to transition to the new framework (FRS 102) for accounting periods beginning on or after 1 January 2015. Comparative information will need to be restated and a reconciliation provided in respect of the opening balance sheet position in the notes to the first set of financial statements prepared under the new framework.
Early adoption of FRS 102 is also permitted.
On transition, FRS 102 requires the user to apply the following rules:
- Recognise all assets and liabilities whose recognition is required by the FRS;
- Not recognise items as assets or liabilities if the FRS does not permit such recognition;
- Reclassify items that it recognised under it’s previous reporting framework as one type asset, liability or component of equity, but are a different type of asset, liability or component under the FRS, and
- Apply the FRS in measuring all recognised assets and liabilities.
It is recommended that companies do not delay in determining not only the changes required to annual financial statements but also the wider commercial impact. The new reporting regime has significant differences. It will impact the recognition of goodwill, intangible assets, deferred tax, valuation of investment properties and financial instruments, to name just a few. The differing treatment needs to be considered on a case by case basis.
Our technical team at ONF are ready to guide you through the transition to FRS 102. We can carry out a review and help you assess the impact of FRS 102 on your company, ensuring you are aware of any potential benefits and helping to mitigate against any negative effects the new standard may have on your accounts. Contact Declan Murphy for further information at firstname.lastname@example.org or on 056-7721157.
Please click the link below to view the presentation slides re: the implementation of FRS 102 which was discussed recently as part of the firm’s ‘Path to growth’ series of seminars.