UK GAAP for Business and Practice (eBook)

Paul Gee (Autor)

eBook Download: PDF

2006 | 1. Auflage
512 Seiten
Elsevier Science (Verlag)
978-0-08-046174-8 (ISBN)

Infos

UK companies other than those listed on the full market or AIM will be permitted to continue using UK GAAP for several years to come. The Accounting Standards Board recently announced that it was re-considering its strategy for converging UK GAAP with IFRS. The UK Government has also brought in many company law changes in the past two years. Never in the history of financial reporting has the pace of change been so rapid.

This book provides you with a concise and easily accessible guide to all the recent changes, and their likely practical impact. This new edition has been extensively updated and revised and includes:

. An Executive summary of recent developments,
. UITF Abstract 40 on Revenue recognition,
. Financial Reporting Standard for Smaller Entities (effective January 2005),
. The latest convergence developments, including summaries of comparison of UK GAAP with IFRS,
. Financial instruments (FRS 25 and 26),
. Events after the balance sheet date (FRS 21),
. A new chapter on the UK regulatory framework, including statutory Instruments issued during 2005,
. Overview of reporting requirements for listed companies.

New features within the book include:

. Frequently Asked Questions at the end of most chapters.
. Each chapter concludes with a concise summary of relevant IFRS requirements.
. References to relevant websites.

The book also includes summaries of current standards and key implementation dates.

[This book was previously known as: Spicer and Pegler: Financial Reporting for Business and Practice]

*Practical, concise reference
*Worked examples
*Checklists
*Chapter what-if scenarios
*Fully updated to cover convergence of GAAP/IAS/IFRS

---

UK companies other than those listed on the full market or AIM will be permitted to continue using UK GAAP for several years to come. The Accounting Standards Board recently announced that it was re-considering its strategy for converging UK GAAP with IFRS. The UK Government has also brought in many company law changes in the past two years. Never in the history of financial reporting has the pace of change been so rapid. This book provides you with a concise and easily accessible guide to all the recent changes, and their likely practical impact. This new edition has been extensively updated and revised and includes:* An Executive summary of recent developments;* UITF Abstract 40 on Revenue recognition;* Financial Reporting Standard for Smaller Entities (effective January 2005);* The latest convergence developments, including summaries of comparison of UK GAAP with IFRS;* Financial instruments (FRS 25 and 26);* Events after the balance sheet date (FRS 21);* A new chapter on the UK regulatory framework, including statutory Instruments issued during 2005;* Overview of reporting requirements for listed companies.New features within the book include:* Frequently Asked Questions at the end of most chapters.* Each chapter concludes with a concise summary of relevant IFRS requirements.* References to relevant websites.The book also includes summaries of current standards and key implementation dates.[This book was previously known as: Spicer and Pegler: Financial Reporting for Business and Practice]*Practical, concise reference *Worked examples *Checklists *Chapter "e;what-if"e; scenarios *Fully updated to cover convergence of GAAP/IAS/IFRS

Inhalt

Cover 1
Acknowledgements 5
Contents 7
Executive Summary 2005 17
UK GAAP or IFRS? 17
Recent Developments 18
Recent Financial Reporting Standards 19
Recent Financial Reporting Exposure Drafts 21
Earlier Financial Reporting Standards 21
The Financial Reporting Standard for Smaller Entities ( FRSSE) 21
Urgent Issues Task Force Developments 22
Company Law Changes 22
Listed Company Reporting 24
Financial Reporting Review Panel (FRRP) 24
Statements of Recommended Practice (SORPs) 24
International Financial Reporting Standards 24
The UK Regulatory Framework 26
Companies Act 1985 Requirements 26
Financial Reporting Council (FRC) 32
Accounting Standards Board (ASB) 33
Urgent Issues Task Force (UITF) 34
Statements of Recommended Practice (SORPs) 34
Statement of Principles 35
Companies (Audit, Investigations and Community Enterprise) Act 2004 36
The Companies Act 1985 (Operating and Financial Review and DirectorsÌ Report etc.) Regulations 2005 37
Companies Act 1985 (Investment Companies and Accounting and Audit Amendments) 39
Legal Opinion on Role of Accounting Standards and True and Fair 40
DirectorsÌ Report 41
Revision of Defective Accounts 44
Financial Reporting Review Panel 45
International Financial Reporting Standards 47
Accounting Policies and Estimation Techniques 49
Objectives of FRS 18 49
Concepts 49
Definitions 50
Examples 51
Concepts and Objectives - Further Comments 52
Changes in Accounting Policies 53
Estimation Techniques 53
Disclosures 54
Illustration 55
International Financial Reporting Standards 59
Profit and Loss Account, Statement of Total Recognized Gains and Losses ( STRGL) and Balance Sheet 60
Introduction 60
FRS 3 - The Profit and Loss Account 64
Exceptional Items 67
Extraordinary Items 70
Discontinued Operations and Provisions 71
Operations in the Process of Being Discontinued 72
Profit or Loss on Disposal of Fixed Assets 72
FRS 3 - The Statement of Total Recognized Gains and Losses ( STRGL) 73
FRS 3 - Other Statements 73
Prior Period Adjustments 76
Comparative Figures 82
International Financial Reporting Standards 82
Cash Flow Statements 84
Background and Scope 84
Format and Content - Single Companies 85
Worked Example - A Single Company Using the Indirect Method 91
Problem Areas - Single Companies 95
Group Accounts Considerations 96
Worked Example - A Group 97
Illustrations from Published Accounts 102
Using Cash Flow Statements 104
International Financial Reporting Standards 105
Reporting the Substance of Transactions 106
Background 106
The Substance of Transactions 107
Features of More Complex Transactions 107
Applying the Principles of FRS 5 108
Recognition of Assets and Liabilities 109
De-recognition 110
Relationship with Other Standards 112
Disclosure Requirements 113
Linked Presentation for Certain Non-recourse Finance Arrangements 114
Offset 115
Consignment Stocks 116
Debt Factoring and Invoice Discounting 118
Sale and Repurchase Agreements 121
Further Complications 124
International Financial Reporting Standards 125
Converging UK GAAP with IFRS 126
Terminology 126
Recap 126
Options for Members of a Group 126
Application to Different Categories of Company 127
Comparison of UK GAAP and IFRS 127
True and Fair Requirement 133
Converging UK GAAP with IFRS - Recent Developments 134
Urgent Issues Task Force Abstracts 135
Extant Standards 135
Revenue Recognition 137
Introduction 137
The Statement of Principles - Recognition in Financial Statements 138
FRS 5, Application Note G 139
Contracts for Services and UITF Abstract 40 147
Other Aspects of UK GAAP 153
Review Panel Press Notices 154
Illustrations from Published Accounts 155
International Financial Reporting Standards 157
Employee Benefits 159
DirectorsÌ Remuneration - Unlisted Companies ( Other than those Claiming Small Company Exemptions under CA 1985 s246) 159
DirectorsÌ Remuneration - Other Disclosures 161
DirectorsÌ Remuneration - Small Companies Claiming Exemptions Under CA 1985, Part VII 163
Retirement Benefit - Introduction 164
Retirement Benefit - Companies Act 1985 Requirements 164
Funding of Pension Arrangements 165
Accounting for Retirement Benefits - FRS 17: Introduction 166
FRS 17 - Transitional Provisions 166
FRS 17 - Full Implementation 168
International Financial Reporting Standards 172
Share-based Payment 174
Overview 174
Employee Share Schemes - UITF Abstract 17 175
National Insurance Contributions on Share Option Gains Ò UITF Abstract 25 178
Accounting for ESOP Trusts - UITF Abstract 38 181
Share-based Payment, FRS 20 184
International Financial Reporting Standards 194
Taxation Including Deferred Tax 195
Accounting for Current Tax 195
Deferred Tax - Introduction 197
Accounting for Deferred Tax - FRS 19 200
Accounting for Deferred Tax - FRS 19: Deferred Tax Assets 202
Accounting for Deferred Tax - FRS 19: Disclosure Requirements 204
Accounting for Government Grants 210
SSAP 5 (Accounting for Value Added Tax) 212
International Financial Reporting Standards 212
Tangible Fixed Assets, Including Impairment 214
Introduction 214
Tangible Fixed Assets - Overview of FRS 15 215
Determining Cost 216
Capitalization of Interest 218
Revaluation 219
Depreciation 224
Website Development Costs 229
Impairment 231
Disposal of Fixed Assets 236
UITF 5 - Transfers from Current Assets to Fixed Assets 237
Investment Properties (SSAP 19) 237
Government Grants for Capital Expenditure 239
International Financial Reporting Standards 240
Intangible Fixed Assets, Including Goodwill 242
Introduction 242
Accounting for Goodwill - FRS 10 243
Intangible Assets (Other than Goodwill) 247
UITF 27 - Revision to Estimates of the Useful Economic Life of Goodwill and Intangible Assets 248
FRS 10 Disclosure Requirements Ò Overview 248
Accounting for Research and Development Expenditure 249
International Financial Reporting Standards 252
Hire Purchase and Leasing 254
Introduction - Financing of Fixed Assets 254
Hire Purchase - Accounting for the Hirer 255
Lessee Accounting - Background 256
Lessee Accounting - Classification 258
Lessee Accounting - Finance Leases and Hire Purchase Contracts 260
Lessee Accounting - Operating Leases 263
Lessee Accounting Disclosures Finance Leases 264
Lessee - Accounting Disclosures - Operating Leases 266
Lease Classification and FRS 5 267
Lessor Accounting - Background 268
Lessor Accounting - Operating Leases 268
Lessor Accounting - Finance Leases 269
Manufacturer/Dealer Lessor 271
Lessor Accounting Disclosure Requirements 272
Sale and Leaseback 274
UITF 28 - Operating Lease Incentives 274
International Financial Reporting Standards 276
Current Assets 278
Stocks and Long-term Contracts - Overview 278
Short-term Stocks and Work-in-Progress 279
Long-term Contracts 285
Debtors 299
Current Asset Investments 302
Cash 302
International Financial Reporting Standards 302
Loans, Provisions, Contingencies and Commitments 304
Introduction 304
Creditors and Loans 304
Provisions 305
Contingencies 314
Commitments 316
International Financial Reporting Standards 317
Financial Instruments 318
Overview 318
FRS 4, Capital Instruments - ShareholdersÌ Funds 320
FRS 4, Capital Instruments - Debt 325
FRS 25 - Financial Instruments: Disclosure and Presentation 326
International Financial Reporting Standards 329
ShareholdersÌ Funds and Dividends 331
Introduction 331
Share Capital Disclosures - Companies Act 1985 331
Reserves - Categories 333
Permitted Reserves Movements 335
FRS 25 - Financial Instruments: Disclosure and Presentation 335
Purchase and Redemption of Shares - CA 1985 Rules 337
Distributable Profits 341
International Financial Reporting Standards 343
Related Party Transactions 344
Introduction to FRS 8 344
Identifying Related Parties 345
Related Party Transactions - Definitions and Examples 347
Disclosure Requirements 347
Companies Act 1985 - DirectorsÌ Interests in Contracts 350
International Financial Reporting Standards 351
Events after the Balance Sheet Date 353
SSAP 17 - Post Balance Sheet Events 353
FRS 21 - Events after the Balance Sheet Date 356
International Financial Reporting Standards 359
Segmental Reporting 360
The Need for Segmental Analysis 360
Companies Act 1985 Requirements 360
SSAP 25 - Segmental Reporting 361
Terminology 361
Disclosure Requirements 361
Relaxations for Smaller Entities 362
Summary of SSAP 25 Requirements 362
International Financial Reporting Standards 365
Accounting for Smaller Companies 367
Reporting Requirements - an Overview 367
Statutory Definitions 368
Shorter Form of Accounts for Shareholders 370
The Financial Reporting Standard for Smaller Entities ( FRSSE) - Overview 372
Using the FRSSE - Accounting and Disclosure Issues 373
Using the FRSSE (Effective January 2005) - Accounting and Disclosure Issues 382
Abbreviated Accounts 384
Small and Medium-sized Groups 385
Concessions Offered by Particular Accounting Standards 385
Legal Considerations 386
Parent Companies 387
Audit Exemption 387
International Financial Reporting Standards 388
Listed Company Reporting 389
Introduction 389
Fully Listed or AIM - Who Makes the Rules? 389
Members of a Listed Group - UK GAAP or IFRS? 390
DirectorsÌ Remuneration - Additional Considerations 391
Operating and Financial Review (OFR) 391
Financial Reporting Review Panel (FRRP) 392
International Financial Reporting Standards Specific to Listed Companies 393
Limited Liability Partnerships 395
Introduction 395
Legal and Administrative Matters 396
Accounts and Audit 397
Statement of Recommended Practice (SORP) 399
Summary - Comparisons with Unlimited Partnerships and Limited Companies 403
Exposure Draft of Proposed Revised SORP 404
International Financial Reporting Standards 404
Accounting for Subsidiary Undertakings 406
Requirement to Prepare Consolidated Accounts 406
Definitions - Parent Undertaking and Subsidiary Undertaking 406
"Dominant Influence- and ÏManaged on a Unified Basis" 407
Accounting Policies 408
Intra-group Items 408
Accounting Dates 409
Exclusion from Consolidation 410
Minority Interests 412
Individual Profit and Loss Account of Parent Company 413
Exemptions from the Preparation of Group Accounts 413
Significant Restrictions on Distributions 419
International Financial Reporting Standards 420
Acquisition Accounting, Fair Values and Business Disposals 422
Accounting for Business Combinations 422
Features of Acquisition Accounting 423
Fair Values and Acquisition Accounting 424
The Merger Reserve (CA 1985, s 131) 426
Acquisition Accounting Illustration 427
Acquisition Accounting Disclosures 429
Changes in Stake 433
Accounting for Disposals of Shares in Subsidiary Undertakings 436
Realization of the Merger Reserve 442
Merger Accounting 444
International Financial Reporting Standards 448
Associates and Joint Ventures 450
Introduction 450
Regulatory Environment - Overview 451
Classification of Fixed Asset Investments 452
Cost Method and Equity Method Compared - an Introduction 452
Investments in Subsidiaries 455
Associates 455
Joint Ventures 458
Acquisitions and Disposals 460
Commencement or Cessation of an Associate or Joint Venture Relationship 461
Loss-making Associates and Joint Ventures 461
Joint Arrangements not Entities (JANEs) 462
Investor not Preparing Consolidated Accounts 463
Associates and Joint Ventures - Further Disclosures 464
International Financial Reporting Standards 466
Accounting for Overseas Operations 467
Introduction 467
Accounts of Individual Companies 467
Consolidation of Foreign Subsidiaries - an Introduction 471
Closing Rate/Net Investment Method 472
Temporal Method 479
Equity Investments Financed by Foreign Borrowings 480
Foreign Branches 483
Foreign Associated Companies 484
Disclosure in Financial Statements 484
International Financial Reporting Standards/ FRS 23 485
Converging UK GAAP with IFRS - the Road Ahead 487
Convergence Experience to Date 487
Progress During 2005 488
ASB December 2005 Convergence Paper 488
And Finally 489
Implementation Dates for Unlisted Companies 490
A1.1 Accounting Standards and UITF Abstracts: Mandatory 490
A1.2 Accounting Standards and UITF Abstracts: Optional* 490
A1.3 Company Law Changes 491
UK GAAP Status Report as at 31 January 2006 492
A2.1 Statements of Standard Accounting Practice 492
A2.2 Financial Reporting Standards 493
A2.3 Financial Reporting Exposure Drafts 495
A2.4 Abstracts Issued by UITF 495
A2.5 Statements of Recommended Practice (SORPs) 497
Extant IASs and IFRSs: Status Report as at 31 January 2006 499
A3.1 International Accounting Standards (IASs) 499
A3.2 International Financial Reporting Standards 501
Useful Website Addresses 502
Index 503

Produkt-Details

• Erscheint lt. Verlag: 10.4.2006
• Sprache: englisch
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Rechnungswesen / Bilanzen
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• ISBN-10: 0-08-046174-3 / 0080461743
• ISBN-13: 978-0-08-046174-8 / 9780080461748