Visit the UK Training website to see this Business Briefing online

Visit the UK Training home page

Follow UK Training on Twitter Connect with UK Training on Linkedin

VAT Training - Brand New Seminar - VAT Visits and Investigations


Preparing for FRS102 - the new UK GAAP  NEW

Maximise Tax Savings from R&D Credit Relief and Patent Box
Intellectual Property - Maximising Your Return
Auto Enrolment - A Practical Guide NEW
The Essential Duties of a Company Director
Controlling Risk - A Director's Guide  NEW
The Role of a Company Secretary in the 21st Century
The Essentials of Employment Law
The Essentials of UK VAT
The Essential Guide to UK VAT and International Trade
The Essential Guide to UK VAT and International Services
The Essential Guide to UK VAT and Property
Coping with VAT Visits and Investigations
Maximising Foreign VAT Reclaims
Understanding Financial Information
Import Procedures and Controls

Satisfied Customers - Find out more...


Bill TelfordDo you know how to move smoothly from existing UK GAAP to new UK GAAP?

I attended Bill Telford’s presentation of Preparing for FRS 102 – the new UK GAAP which gave a very clear and detailed explanation of what an organisation needs to do when planning a move from existing UK GAAP to the new UK GAAP.

The seminar highlighted for me that the most important thing to recognise is that your transition date will most likely be less than a year away and for some it will be less than 3 months away. 

The following table illustrates the transition dates for companies that have the most common year ends.

If your financial year ends on:

Then your transition date will be:

31st December

1st January 2014

31st March

1st April 2014

30th June

1st July 2014

30th September

1st October 2014

For purposes of producing a set of accounts in accordance with the new UK GAAP you will need to perform a carefully thought out, well-disciplined process which starts with the identification of the company’s transition date.

Your annual accounts for the first year ending after the transition date will be prepared under existing UK GAAP. When moving to new UK GAAP these figures need to be restated to serve as the comparatives in the first year

This will involve you recognising all those assets and liabilities required by FRS 102 and excluding those assets and liabilities that have been recognised in accordance with existing UK GAAP and are no longer permitted under FRS 102.  In addition you will have to consider reclassifications of all assets, liabilities and equity and then apply FRS 102 in measuring their values.

The next step in the process is to identify the consequential effects of new UK GAAP on the reporting of the income and expenses for the financial year starting on the transition date. This ensures that you have all of the comparators in place for the first financial year in which you are producing a full set of accounts in accordance with FRS 102.

To conclude the process of transition, your first full set of accounts produced in accordance with FRS 102 will need to include two reconciliation statements. One will clearly show the differences between how equity was stated in accordance with existing UK GAAP and how it is now stated in accordance with FRS 102. This is required not just at the end of the comparative period but also at the transition date, together with a full explanation of what has brought about the changes in the equity. The second reconciliation will clearly show the profit for the comparative period as reported under existing UK GAAP and how it is reported in accordance with FRS 102, this will again require a full explanation of what has brought about the change.

For the uninitiated this could sound very confusing.  I strongly recommend that all preparers of accounts for limited companies who have not considered the ramifications of FRS 102 invest three hours of their time in the excellent seminar that I attended. For full details of the seminar please go to this web page.

Stephen Smith
Managing Director
UK Training (Worldwide) Limited


UK Training (Worldwide) Limited, is registered in England and Wales. Registration number: 2695623.
Registered office: 17 Duke Street, Formby, L37 4AN.