Accounting and financial reporting
Are you ready for the biggest shake up in the accountancy world for years?
Do you know of the changes that are now upon us and that the UK Generally Accepted Accounting Principles you have known for years are no more? RIP UK GAAP!
A new regime is here and it affects all companies from Micro companies to Quoted companies.
The new regime can be summarised as follows:
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Micro companies
Micro companies will be governed by FRS 105 for periods commencing 1 January 2016
Who is a micro company? You must satisfy 2 of 3 of the following:
- Turnover no more than £632,000
- Gross assets no more than £316,000
- Employees no more than 10
Micro companies will not be able to file abbreviated accounts.
Micro companies will file S444 accounts which will in effect just be a balance sheet
This is for accounting periods commencing 1 January 2016 but early adoption for periods commencing 1 January 2015 is permitted.
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Small Entities
Small entities will be governed by FRS 102 for periods commencing 1 January 2016
Who is a small company? You must satisfy 2 of 3 of the following:
- Turnover no more than £10.2m
- Gross assets no more than £5.1m
- Employees no more than 50
This applies from periods commencing 1 January 2015.
Small company disclosure requirements are detailed in FRS 102 Section 1A and these provide good disclosure exemptions from the main standard.
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Medium and Large Entities
Medium/Large entities will be governed by FRS 102 for periods commencing 1 January 2015
Who is a medium/large entity? You must satisfy 2 of 3 of the following:
- Turnover no more than £36m
- Gross assets no more than £18m
- Employees no more than 250
This applies from periods commencing 1 January 2015.
These companies cannot take advantage of the disclosure exemptions in FRS 102 Section 1A
There are transitional rules and changes to accounting principles etc.
Are you ready for the change?
