How will FRS102 affect your tax position?

A few very high level pointers to be aware of with New UK GAAP (FRS102), from our network:

Business Accountant

junge frau lernt für eine prüfung

FRS102 will affect us all, even small companies will be subject to a version of FRS102.

Its not just a reporting standard it will affect your tax position too, for example

Intangible Assets and Goodwill

Under FRS102 these assets will have a maximum life of 5 years where as UK GAAP allowed them to have an infinite useful life.

Distributable Reserves

There are various FRS102 changes that can effect these but one specific one is deferred tax which will be calculated on investment properties.

Operating Leases

Leases incentives will be spread over the entire life of the lease rather than to first break clause.

Asset Reclassification

Some assets such as Websites and software development could be reclassified as Intangible

Have you assessed the changes for your business?

FRS 102 is effective for periods beginning on or after 1 January 2015.

steve@bicknells.net

View original post

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s