FRS 102 differences Flashcards
IAS 1 - Presentation
IFRS - provides recommended format
FRS 102 - uses Companies Act 2006 format
Conceptual framework
FRS 102 - recognises additional qualitative characteristics
MATERIALITY
SUBSTANCE OVER FORM (complete, relevant and accurate overall picture)
PRUDENCE (being cautious)
IAS 20 - Accounting for government grants
IFRS - Either deferred income or netting off method
FRS 102 - Only deferred income
IAS 23 - Borrowing costs
IFRS - borrowing costs must be capitalised
FRS 102 - can either be expensed or capitalised
IAS12 - Income taxes
IFRS - conceptualises deferred tax through SOFP
FRS 102 - conceptualises deferred tax through statement of PROFIT OR LOSS
IAS24 - Related party disclosures
IFRS - disaggregated
FRS 102 - requires just a total of key management personnel
IAS28 - Investments in Associates & JV’s
IFRS - Goodwill is included within the carrying amount and is NOT amortised
FRS 102 - Implicit goodwill arising on an associate should be amortised
IAS38 - Intangible assets
IFRS - ALWAYS capitalise development costs
Can have INDEFINITE useful life
FRS 102 - choice to capitalise or expense development costs
Can only have definite useful life, no more than 10 years
IFRS3 - Business combinations
IFRS - goodwill is not amortised
Gain on bargain purchase is recognised in p&L (negative goodwill)
NCI can choose either proportionate or fair value
FRS 102 - goodwill is AMORTISED over it’s UEL
Negative goodwill is shown as a negative asset on the SOFP
NCI can only be measured at PROPORTIONATE method
IFRS5 - Non-current assets held for sale & discontinued operations
FRS 102 - No “held for sale” category exists, so continue to depreciate the asset until disposal
Discontinued operations are shown in a separate column in the income statement (rather than P&L)
IFRS9 - Financial instruments
IFRS - classifies assets based on business models and contractual cash flows
Adopts an expected loss approach
FRS 102 - investments in shares go to FVTPL
investments in debt are at amortised cost
Adopts an incurred loss approach
IFRS10 - Consolidated financial statements
FRS 102 - subsidiary should be excluded from consolidation if held exclusively for resale purposes or where severe long term restrictions apply
IFRS15 - Revenue from contracts with customers
IFRS - adopts 5 stage approach
FRS 102 - splits revenue accounting into:
sale of goods
provision of services
construction contracts
IFRS16 - Leases
IFRS - lessees recognise an asset and a liability for all leases (unless short term and minimal value)
FRS 102 - Lessee classify as either operating or finance lease
Only finance leases recognise a liability and an asset
