New UK GAAP and Foreign Exchange transactions. Some useful information and new valuation techniques to be aware of.
Comments on the Exposure Draft was due by 30 April 2015, so if you missed it, we are afraid the the train has already left the station.
In a nutshell, we have some serious conceptual and philosophical concerns the FRED 58 does not address (and staff at the FRC at a recent event in London, prior to the General Election, could not provide assurances on).
Effectively FRS 105 (as it will be know), once it is ratified and adopted in parliament, will not be IFRS ‘Lite-lite‘, although it will have some of the overall principles of Fair Value Accounting contained within it.
At a fundamental level micro-entities (* as defined below) can choose to adopt either FRS 105 or FRS 102. However, be very careful in which one you choose, as the two standards have some fundamental differences contained within them, which, later down the line (as the proverbial can is kicked up the road), might cost you additional compliance fees and time and effort, if you need to convert from FRS 105 reporting to FRS 102 (New UK GAAP).
Our concern is this:
“The overall objective of all the initiatives (driven from Brussels) is HARMONISATION. The differences in approach between FRS 105 and FRS 102 do not underscore this fundamental principle!”
Hence, our health warning: Think and consult carefully, before adopting either standard (FRS 102 or FRS 105) if you are a micro-entity caught in the compliance reporting net.
If you have any questions or concerns, please contact us for more details.
©2015 – Rohan Badenhorst
*Definition of a micro-entity:
Micro-entities – HMRC guidance – May 2015
Micro-entities are very small companies. Your company will be a micro-entity if it has any 2 of the following:
- a turnover of £632,000 or less
- £316,000 or less on its balance sheet
- 10 employees or less
If your company is a micro-entity, you can:
- prepare simpler accounts that meet statutory minimum requirements
- send only your balance sheet with less information to Companies House
- benefit from the same exemptions available to small companies
If you have not yet filed Annual Accounts for a CIC (Community Interest Company), then please be aware that the process and procedures for filing the Annual Accounts at Companies House is different from normal electronic filings.
Firstly you cannot file electronic Annual Accounts.
Guidance is published here at the Companies House web site.
In order to file the Annual Accounts you will need to prepare a form CIC 34 which can be downloaded from the link.
The completed and signed (by a director or company secretary) CIC 34 form, together with a printed copy of the Annual Accounts and a £15 filing fee must be sent to Companies House well in advance of the filing deadline. This is to avoid any late filing penalties, should Companies House reject the initial filing and you need to make any amendments that might be necessary in order to re-file the Annual Accounts.
Companies House officials were not yet able (during April 2015) to provide us with information as to when the electronic filing of CIC Annual Accounts will be possible.
Hence, just like filing Limited Liability Partnership Annual Accounts, the traditional hard copy and postage paid (preferably recorded delivery) or handing in the documents at a Companies House official Contact Centre office location, is still the only way to get the Annual Accounts filing compliance check done, for the time being.
©3resource – 2015
Directors Loan Accounts (DLA). Some guidance from our Business Accountant network below
Some thoughts on compliance and the use of language: marrying tax with morality…
A few very high level pointers to be aware of with New UK GAAP (FRS102), from our network:
Tax case law on procedural and factual matters regarding the classification of transactions. Be clear what is in your mind at the time of the transaction. An extension of the Motive Test, via our network
Digital #Tax Accounts. Some information about what to expect from 2016 onwards.
Following the revelations on 12 March 2015 on the Radio 4 Today programme by Hazel Blears of the UK Intelligence and Security Committee of Parliament, our question today is this simple one:
“Does any Information Security Safe-Harbour rule actually in practice exist?“
“Use your own common sense, think, check, re-read that electronic data information package, before you press the send button”
Some thoughts and an eQuation to measure the relative attractiveness of an #Open and #Free #Market. Or was that a #Fair market?