The wait is over – The New UK GAAP has arrived
The new – and long awaited – UK GAAP – FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, has arrived with the first financial statements hot off the press for the year ended 31 December 2015.
Martin Garrity, Director of BPR Heaton stated ‘FRS 102 modernises and simplifies financial reporting for our medium sized and large unlisted companies. FRS 102 brings existing international standards to the UK, cutting the existing 3000 pages of UK GAAP to less than 400.’
He continued ‘The majority of companies will find that they need to make changes to their accounts. The difficulty is that these differences may not always be obvious but could have the potential to alter profits, which will in turn affect many different aspects of a business, for instance banking covenants, tax bills and profit-related bonuses.’
‘What people need to figure out is precisely how this standard will affect their business, and what they can do to minimise potential negative impacts; this takes planning. One of the most talked about changes is the introduction of more fair value accounting, in particular for instruments such as foreign exchange forward contracts and interest rate swaps.’
If you require any further information or assistance with the transition to FRS 102 please contact Martin Garrity or Stephen Hinchcliffe on 0113 2574506 or email firstname.lastname@example.org