The new standards apply if your turnover is under £10.2m.
On February 19 2015, the FRC launched a consultation on three financial reporting exposure drafts (FREDs) that make amendments to UK GAAP and base them on the FRS 102 framework.
The new FREDs are as follows:
The key changes proposed in the three FREDs include:
The proposals are intended to be effective for accounting periods beginning on or after 1 January 2016, with early application permitted for accounting periods beginning on or after 1 January 2015.
Companies qualifying as small under the increased Companies Act thresholds (Turnover £10.2m, Balance Sheet total £5.1m, employees 50) will therefore be able to apply FRS 102 for small entities from 1 January 2015 rather than apply full FRS 102.
Each FRED includes a number of consultation questions relating to specific issues on which the FRC is particularly interested in receiving comments from stakeholders.
Some of the most significant questions are:
The consultation (which can be accessed via the related links aside) on the three FREDs runs up to 30 April 2015 and we invite you to send your comments to ACCA via email at firstname.lastname@example.org by 31 March. We will consider these and incorporate our members’ views into our own reply.