UK GAAP and IAS Comparison

Question 1

IAS 8 - Accounting Policies, Changes in Accounting Estimates/Errors

What is the difference between FRS 102 & IAS 8 with reference to changing from FV to cost model.

E.G Change of accounting policy

Answer 1

FRS 102 states that a change to the cost model when a measure of fair value is no longer available is not to be treated as a change of accounting policy

Question 2

Comparing - IAS 1 to FRS 102

What does FRS 102 define extraordinary items as?

Answer 2

Material items possessing a high degree of abnormality which arise from events outside the normal operating activities of the business.

Question 3

Comparing - IAS 1 to FRS 102

How does FRS 102 state that extraordinary items should be disclosed?

Answer 3

Seperately on the face of the income statement.

Question 4

Comparing - IAS 1 to FRS 102

FRS 102 - In what scenario can an entity present a single statement of income and retained earnings?

Answer 4

If the only changes to equity arise from profit or loss, payments of dividends, correction of prior period errors and changes to accounting policies.

Question 5

Comparing - IAS 1 to FRS 102

IAS 1 - In what scenario can an entity present a single statemnet of profit and loss?

Answer 5

In no scenario regarding IAS 1.

Question 6

Comparing - IAS 1 to FRS 102

What is the Statement of financial position called under FRS 102.

Answer 6

Balance sheet

Question 7

Comparing - IAS 1 to FRS 102

What is the statement of profit and loss called under FRS 102?

Answer 7

Income statement

Question 8

Comparing - IAS 1 to FRS 102

What is the Retained earnings called under FRS 102?

Answer 8

Profit and loss account (reserve).

Question 9

Comparing - IFRS 5 to FRS 102

Under FRS 102, how are discontinued operations disclosed?

Discontinued operations

Answer 9

As a seperate column in the I/S

Question 10

Comparing - IFRS 5 to FRS 102

Under FRS 102, how are held for sale items disclosed?

Answer 10

They continue to be depreciated up to the date of disposal and are kept in the NCA subheading

Question 11

Comparing IAS 16 (PPE) to FRS 102

Under IAS 16 what do entities have to present on the F/S

Answer 11

Comparative information in respect of PPE b/d and c/d

Question 12

Comparing IAS 16 (PPE) to FRS 102

Under FRS 101, What do entities not have to present on their F/S with reference to PPE

Answer 12

They do not have to present comparative information in respcet of PPE b/d & c/d

Question 13

Comparing IAS 23 to FRS 102

In reference to FRS 102, what do entities have the choice of when determining how to recognise borrowing costs?

Answer 13

Whether to capitalise borrowing costs or expense them.

Question 14

Comparing IAS 36 and FRS 102

What is the difference between IAS 36 and FRS 102

Impairment

Answer 14

There are no differences

Question 15

Comparing IFRS 5 and UK GAAP

What is the key difference?

Held for sale

Answer 15

UK GAAP has no held for sale concept.

Question 16

Comparing IAS 38 and FRS 102 - Intangible assets

What is the key difference with reference to useful life?

Answer 16

FRS 102 - All intangible assets are expected to have a finite life.

Question 17

FRS 102 & IAS 37

What are the differences between FRS 102 and IAS 37?

Provisions, contingent liabilities and contingent assets

Answer 17

There are no differences

Question 18

FRS 102 and IAS 33 EPS

What are entities reporting under FRS 102 required to use?

Answer 18

They are required to use IAS 33 Earnings per share

Question 19

FRS 102 & IAS 24 related parties

What exemption is granted under FRS 102

Answer 19

No disclosure of related party transactions required as long as the subsidiary is wholly owned.

Question 20

FRS 102 compared with IFRS Consolidation

Under FRS 102 what is NCI measured at

Answer 20

It is always measured at its share of net assets.

Question 21

FRS 102 compared with IFRS Consolidation

How is goodwill treated differently under FRS 102?

Answer 21

Goodwill is amortised, whereas IFRS 3 prohibits this and requires annual impairment reviews.