FRS 102 Flashcards
Property, plant and equipment (2)
- Borrowing costs are not always capitalised
- Certain disclosures around the revaluation surplus and changes in depreciation are not required
NCA - Investment property (2)
- Assumption that the fair value method is used, if FV cannot be measured, use cost and deal with as part of PPE
- If entity rents property to another group entity, it’s accounted for either as I.P at fair value or by transferring property to PPE and applying cost model
NCA - Held for sale
No requirement to classify assets as held for sale
NCA - Leases
Number of differences. Asset and liability must be recognised for finance leases but not operating leases
NCA - Impairment
No fundamental differences
Inventories
No significant differences
Revenue from contracts with customers (5)
- Separate models for: sale of goods/ rendering of services/ construction contracts/ interest royalties and dividends
- Revenue measured at FV of consideration received/ receivable
- Revenue is discounted to PV if value of consideration is deferred
- No guidance on issues eg variable consideration
- Revenue recognised when risks and rewards are transferred
Accounting policies and estimates
No material differences
Discontinued operations (4)
- No specific section under FRS 102
- Consistent with IAS1
- Line by line analysis of amount in income statement
- Comparatives presented on same basis
Events after the reporting period
No significant differences
Provisions, contingent assets and contingent liabilities
No fundamental differences
NCA - Intangible assets (2)
- Development costs meeting FRS 102 criteria MAY be capitalised
- All intangible assets assumed to have finite useful life . When unknown, max of 10 years is used. Therefore Goodwill is amortised.
Financial instruments: presentation, classification and measurement (3)
- Fewer classifications for financial assets under FRS 102 > no FVTOCI category
- Classifications for financial liabilities is the same
- Requires that financial assets/ liabilities are measured at FVTPL unless FV cannot be measured reliably, then cost less impairment is used
Financial instruments: recognition
No differences
Consolidation: changes in ownership
Cost of combination = total consideration given at date of each acquisition of shares with no remeasurement
Consolidation: foreign currency
No differences
Consolidation: associates and JVs
Both require use of the equity accounting method
Consolidation: accounting requirements
FRS 102 > a subsidiary must be excluded from consolidation if it is acquired exclusively with a view to subsequent resale
IFRS > subsidiary may only be excluded from consolidation if it is not material
Disclosure: related parties
Does not require disclosure of transactions entered into between two or more members of a group provided that any subsidiary party to the transaction is wholly owned.
Current tax
No significant differences
Share based payments
No fundamental differences
Employee benefits
Disclosure requirements less extensive under FRS 102 but broadly in line
Operating segments
Entities should refer to IFRS 8, no guidance provided
Statement of cash flows
Requires most companies to prepare a statement of cash flows and takes a similar approach to IAS 7.
