020 7213 9911

HAT Group, making accountants count

Making life easier for most entities…

The Financial Reporting Council (FRC) have confirmed the amendments to FRS 102 (which were formerly known as FRED 67). These amendments are simplifications of FRS 102 and are as a result of stakeholder feedback on the implementation of the new Standard. The FRC state that “the overall impact will be more cost-effective financial reporting with no loss of significant information to users of the financial statements.” The main changes for HAT firms are:
  • No longer having to discount (some) Directors’ loans to small entities;
  • There will be less recognition of separate intangible assets arising on a business combination (making the requirements akin to old FRS 10 requirements);
  • Investment properties rented out intra-group will no longer have to be carried at fair value (akin to old SSAP 19 requirements)
  • More financial instruments will be able to be measured at amortised cost rather than fair value.
  • There are several disclosure amendments, including the re-introduction of the net debt reconciliation to support the Statement of Cash Flows (akin to old FRS 1 requirements)
These changes should be a welcome early Christmas present for most HAT firms, particularly for those who hark for the days of old UK GAAP! The changes are applicable for accounting periods commencing on or after 1 January 2019, but are available for early adoption, provided all amendments are applied, immediately (without any limitation on accounting period start/end dates). We will be updating the Manuals in the New Year to reflect the amendments, and the changes will be discussed in the Q1 2018 Technical Update. The FRC’s press release, along with related documentation, can be found here: https://frc.org.uk/news/december-2017/simplification-of-uk-gaap-benefits-up-to-4-million