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WHICH ACCOUNTING STANDARD SHOULD YOU USE?
When preparing a set of financial statements in the UK there is a choice of accounting standard to apply in order to comply with UK Companies Act 2006. Broadly the choice is between UK GAAP accounting standards and International Accounting standards (IFRS). UK GAAP is broken down into FRS 102, FRS 102 section 1A, FRS 105, and FRS 101. Here we will just be discussing the major differences between FRS 102 and IFRS and why you might choose one over the other, but you can…
IS THERE A REQUIREMENT TO USE EITHER UK GAAP OR IFRS?
The international financial reporting standards (“IFRS”) are the standards applicable to companies who do not apply a local GAAP. These mostly tend to be international companies. IFRS is mandatory for listed companies, but for all other UK companies there is a choice between IFRS and UK GAAP.
The first point to establish is whether there is a requirement to use either UK GAAP or IFRS – if a company is part of a larger group, the group may mandate use of one or the other (most likely to be IFRS if an international group or listed) and therefore you may want to consider whether FRS 101 can apply.
At Menzies we have a dedicated team of IFRS specialists who ensures that our clients receive accurate, high quality financial reporting and provide them with peace of mind that they are in full compliance with all relevant regulations.
WHERE CAN WE HELP?
IFRS financial statements
- Preparation of year-end financial statements
- Assistance with disclosures and data collection for those disclosures
- Providing in house training on the latest IFRS standards and future expected changes
Audit of IFRS financial statements
IFRS financial reporting
- Analysing the impact of changes to the IFRS standards, for instance IFRS 15 Revenue, IFRS 16 Leases, by reviewing current processes and analysing what changes need to be made
- Making recommendations on how to change recognition and reporting to take account of the latest standards
SPEAK TO AN EXPERT
To speak to a partner or for more information about the accounting standard services we offer please contact one of the Menzies LLP offices or complete our contact from below.