The new financial reporting standards    
Introduction
All the old UK accounting standards and the FRSSE have been replaced, mainly by FRS 102 and FRS 105. In addition, the law has been changed so as to reduce the disclosures required by small companies.


Applicable standards and implementation dates
Medium/large companies. FRS 102 applies to accounting periods commencing on or after 1 January 2015.

Small companies. FRS 102 (with an extra chapter for small companies) and company law changes apply to accounting periods commencing on or after 1 January 2016 (can optionally be adopted for periods commencing on or after 1 January 2015).

Micro-entities. FRS 105 applies to accounting periods commencing on or after 1 January 2016 (can optionally be adopted for periods commencing on or after 1 January 2015).

Line items
For all classes of company, the line items in the profit and loss account and balance sheet are specified by company law. Only in the case of medium/large companies can the FRC add further items.

Terminology
FRS 102 uses phrases such as Statement of income and Statement of financial position. Alternative terminology is allowed. VT continues to use the Companies Act terms such as Profit and loss account and Balance sheet (except for medium/large companies where the new terms are used).

Large/medium companies
The December 2015 edition contains the new large/medium company template prepared under FRS 102.

Small companies
The disclosures required have been reduced by law and in theory the FRC cannot add to them. However, the accounts must still show a true and fair view and FRS 102 "encourages" certain additional disclosures. The VT template contains an optional Statement of comprehensive income and an optional Statement of changes in equity, as encouraged by FRS 102.

Abbreviated accounts have been abolished; instead the balance sheet and notes from the full accounts are submitted to Companies House.

A new template is included in the November 2016 edition of VT Accounts.

Micro-entities
The disclosures for micro-entities are solely determined by company law and FRS 105 has absolutely no effect on the format of the accounts (except for the optional clause stating the standard they have been prepared under).

The requirement for a micro-entity to prepare a directors' report has been abolished.

There is no separate FRS 105 taxonomy. Instead, micro-entity accounts for periods commencing on or after 1 January 2016 must be tagged using the FRS 102 taxonomy.

A new template is included in the November 2016 edition of VT Accounts.

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