New FRS: Delaying the inevitable and having your say on the changes...
For periods beginning on or after 1st January 2015, the rules governing financial reporting for small and medium entities have changed.
Your December 2015 year ends have now passed and, if you haven’t already, you’ll soon be preparing your first set of FRS 101 and 102 accounts. This transitional first year could see your accounts preparation taking significantly longer. Are you ready for it?
Like many, you may be finding the transition difficult to manage and are concerned about having to cope with the volume of transitional accounts when FRS 102 Section 1A takes hold, bringing small entities within the scope of FRS 102.
You may even be asking yourself, “What can I do to give myself more time to prepare”? Have you thought about how much time you’ll actually need? Chances are, it will be a significant chunk.
Fortunately, our New UK GAAP Transition Impact Calculator can work it out for you. It calculates the additional time you’ll need to allow for when moving your clients to the new reporting standards, helping you to plan accordingly. (You can find more info and insight over at our FRS Hub.)
If it’s more of a delaying tactic you’re after, you could make your 2015 accounts up to the 30th December. “But what about all the paperwork for a change of accounting date?” you ask. Worry not: you can make these changes with no paperwork at all, provided the new date is within 7 days.
That means all your December year ends will then have an accounting period starting before 1st January 2016, giving you another 12 months before you have to transition them to FRS 102 1A.
I can hear the celebrations from here but don’t get too excited just yet, as you’ll probably have March year ends too. It won’t buy you a full year but, importantly, if you’re really worried, it could give you the extra time you need to get up to speed, take any necessary training and familiarise yourself with the new standards and the effect they’ll have on your clients.
Have your say on the future of Financial Reporting Standard 102
If, on the other hand, you’ve already fully embraced FRS 102, then don’t miss the opportunity to have your say. The FRC are currently inviting feedback on the new standard to inform its future development.
Comments on any aspect of both FRS 102 or its implementation, or any other UK and Ireland accounting standard, can be sent to firstname.lastname@example.org.
This might include views on the benefits of the new standards, as well as suggestions for improvements or areas where you found the implementation challenging.
FRC have stated that any comments received by 31st October 2016 will be used to inform the development of proposals for changes to accounting standards, which will be subject to formal consultation at a later date (expected to be during 2017) in advance of a planned effective date of 1st January 2019.
Don’t miss this opportunity to help shape the future of your industry.