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 and small LLP's. FRS 102 (with an extra section for small entities) 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-entity companies and LLP's. 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/LLP, 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 current 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 current edition of VT Accounts.

Micro-entity companies
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 current edition of VT Accounts.

Small company abridged accounts
Abridged accounts are an alternative form of small company accounts. They are not prepared in addition to the normal accounts. Abridged accounts are not a replacement for abbreviated accounts.

The members must unanimously agree to the preparation of abridged accounts each year. The abridged accounts are given to the members and HMRC. As with normal small company accounts, only the balance sheet and related notes need to be filed with Companies House.

Turnover and the breakdown of debtors and creditors are not disclosed in abridged accounts. In particular, the corporation tax liability (and indirectly the profit) are not included in the balance sheet related notes.

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

LLP's
An LLP template based on FRS 102 is included in the current edition of VT Accounts.


Accounts prepared using the new templates can be filed electronically with Companies House by choosing the VT XBRL>Companies House>Generate New Submission command.
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