FRS 102 Differences Flashcards
IFRS 3 Business Combinations
Contingent consideration.
Under FRS 102, contingent consideration is included in the cost of a business combination, if its payment is probable and the amount can be measured reliably.
IFRS 3 requires the fair value of contingent consideration to be included in the cost of a business combination REGARDLESS of whether payment is probable;
IFRS 3 Business Combinations
Transaction costs.
FRS 102 includes transaction costs
IFRS 3 Business Combinations
NCI method
FRS 102 only uses proportionate share method, and NOT FV method.
IASB Conceptual Framework
and
IFRS 13 Fair Value Measurement
FRS only uses
FV
Historical Cost
IAS 7 Statement of Cash Flows
FRS 102 allows qualifying entities to NOT include a statement of cash flows.
IAS 27 Separate Financial Statements
IFRS 10 Consolidated Financial Statements
IFRS 12 Disclosure of Interests in Other Entities
Definition of controls differs.
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
FRS 102 states that a change to the cost model when a reliable measure of fair value is not available is not a change in accounting policy.
IFRS 9 Financial Instruments
- FRS 102 divides financial instruments into BASIC and OTHER.
- BASIC normally valued at amortised cost.
- OTHER at FV through profit or loss. - Unlike FRS 102, IFRS 9 adopts an ‘expected loss’ model rather than an ‘incurred loss’ model.
- FRS 102 establishes a simplified model for the derecognition of financial assets.
IAS 2 Inventories
FRS 102 provides additional guidance on what should be included in production OVERHEADS.
Under FRS 102 impairment losses can be reversed.
IAS 16 Property, Plant and Equipment
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
FRS 102 no separate guidance for non-current assets held for sale.
Under FRS 102, a review of residual value and useful life is only required when indicators of change are present.
IAS 38 Intangible Assets
Under FRS 102, an entity may recognise an intangible asset arising from development if certain criteria are met.
An intangible asset acquired in a business combination can be treated differently in accordance with FRS 102.
In exceptional cases, if an entity is unable to make a reliable estimate of the useful life of an intangible asset, FRS 102 states that the life should not exceed ten years.
FRS 102 states that if an intangible asset is acquired free of charge or for nominal consideration by way of a grant, the cost of that intangible asset is its fair value at the date the grant is received or receivable.
IFRS 3 Business Combinations
Under FRS 102, transaction costs are included in the cost of acquisition.
FRS 102 states that where control is achieved through a series of transactions, the acquisition cost is the TOTAL of the FAIR VALUES of the assets given, liabilities assumed and equity instruments issued.
FRS 102 utilises only the proportionate share method for NCI and not the fair value method.
IFRS 16 Leases
FRS 102 treats leases as finance or operating leases in the financial statements of the lessee.
IFRS 15 Revenue from Contracts and Customers
FRS 102 does not adopt the five-step rule in IFRS 16. Detailed
IAS 23 Borrowing Costs
FRS 102 allows a CHOICE of whether
to capitalise borrowing costs. IFRS 23 requires borrowing costs which are directly attributable to a qualifying asset as part of the cost of that asset.
