Seminar – Financial Reporting Update 2019

By November 12, 2018Blog

Please join us on Thursday 31st January at our annual Financial Reporting Update.

The areas to be covered at this seminar will include both current and upcoming changes to the accounting rules governing the statutory accounts of companies reporting under both UK and International standards:

UK GAAP

The key changes result from the Triennial Review of FRS102, which is the main accounting standard relevant to the majority of UK GAAP reporters.

Key points include:

  • Investment property accounting in a group context

The change removes the anomaly where an asset could be carried at depreciated cost in a set of consolidated accounts, but annually revalued through P&L in the individual company owning the asset.  We will consider the transitional options available in adopting this change.

  • Separately recognised intangible assets in acquisition accounting

An unpopular aspect of the original FRS102 was its adoption of the rule from International Standards requiring intangible assets (such as customer relationships) to be recognised separately from goodwill. Many considered this an onerous and unnecessary requirement for UK companies.

Although the amendment is a welcome relaxation of the rules, the changes are both optional, and do not (contrary to some announcements) represent a move back to the “old UK GAAP” rules of only ever showing goodwill.

  • Financial instruments updates

The key change relates to the discounting rules around shareholder/director loans made to small companies. (If you’ve got this the chances are you’ll already know! If not we will give a brief recap on the current ‘problem’ and the benefit of the new rules).

We will also give an overview of other changes impacting on some but not all companies.

  • Disclosure amendments

There are changes in both directions, including a welcome reacquaintance with an ‘old friend’ but also some welcome simplifications.

International Financial Reporting Standards

International reporters are likely to have commenced planning for the implementation of three upcoming key new standards.

In each case we will provide:

  • An overview of the key accounting changes in the new standards;
  • Insights into optional choices where applicable; and
  • Guidance on the transitional arrangements in place for first-time adoption

IFRS9 Financial instruments

An overhaul of financial instruments which is likely to lead to:

  • Greater volatility of reported results as a result of more requirements to apply fair value accounting
  • Faster recognition of provisions for non-collectability of loans and receivables, including trade debts
  • Changes in the application of hedge accounting

IFRS15 Revenue

New rules requiring a five step process to be applied to determine when revenue should be recognised for each of a company’s revenue streams.

IFRS16 Leases

A fundamental change to the accounting required for companies leasing rather than purchasing assets for use within their business.

The key change is the removal of the distinction between an operating lease and a finance lease. Essentially this will result in the vast majority of leases being treated as finance leases, which for nearly all reporters will have a substantial impact on the reporting of both balance sheets and reported profits.

In addition to the above we will also give a brief round-up of any more recent changes announced or expected between now and the date of the seminar.

To reserve your place at our financial reporting seminar please email Lisa Dickinson at lisa.dickinson@murrayharcourt.com.