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Digita Accounts Production Advanced – keeping up with legislative changes

written by Editor, 25 June 2015

Guest Blog by Briony Kempton, Head of Accounts Production, UK Tax & Accounting

We are currently going through a significant amount of legislative change impacting the reporting environment for many entities in the UK and Ireland.

For accounting periods beginning on or after 1 January 2015 ‘old UK GAAP’ no longer exists.  Companies will need to adopt full IFRS, FRS 101 (IFRS with reduced disclosures) or FRS 102.

In addition to this, in September 2014 the FRC published a new XBRL taxonomy which supports tagging under these new standards.  HMRC will now accept accounts that have been prepared after 1 April 2015 tagged with the new taxonomy.

For Irish companies, in addition to the new reporting standards, the Companies Act 2014 will come into effect on 1 June 2015.  This Act consolidates all existing company law and is intended to make running a business in Ireland easier.

Software

The Charities SORP 2015 was published in July 2014 and will take effect for financial years commencing on or after 1 January 2015.  There are two versions of the SORP, one based on FRS 102 and one for smaller charities known as the FRSSE SORP.

A revised SORP for LLPs was also issued in July 2014, again to incorporate the changes brought about by the introduction of FRS 102, and will be effective for accounting periods beginning on or after 1 January 2015.

There are also some future changes with regard to smaller companies:
FRED 58 sets out a proposed new standard for micro-entities – draft FRS 105 – and is based on the recognition and measurement requirements of FRS 102.

FRED 59 highlights the draft amendments to FRS 102 applicable for small entities.  It is proposed that the current FRSSE is withdrawn and replaced with a new section of FRS 102 (Section 1A).  It proposes that small entities will apply the recognition and measurement requirements of FRS 102 but will have different presentation and disclosure requirements.

The adoption of these new standards will impact a large number of entities and busy practices will be put under further pressure when it comes to year end reporting with their clients.

We aim to produce up to date, compliant templates on a timely basis.  Our first IFRS template was issued in April 2012, followed by FRS101 in August 2013 and FRS 102 in September 2014 (to accommodate those who wished to early adopt).  We have recently released updated templates to account for the new taxonomies noted above.

We at Thomson Reuters want to ensure that you have the templates necessary to keep your client base compliant, even through periods of huge legislative change as we are currently experiencing.


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