UK GAAP to IFRS Flashcards
FRS 101 ?
Reduced disclosure framework for a qualifying entity
FRS 101 - benefit ?
helps that a small entity that is part of a group avoid making extensive disclosures
FRS 102 ?
Financial reporting standand for a single simplied reporting standard and incorporates companies act 2006, suitable for SME business
FRS 102 - benefit?
Removes complex areas such as segment reporting and earning per share
Qualitative characteristics in FRS 102
Reliability - substance over from - prudence - completeness
Asset definition under UK GAAP?
A resource controlled by the tntity as a result of past events and from which future economic benefits are expected to flow to the entity
Liability definition under UK GAAP?
A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits
FRS measurement?
Historical cost and fair value
When is an item recognised in FRS?
When it is probable that future economic benefit to flow from the entity
Under FRS what must the financial statements show?
a true and fair view
In UK GAAP who sets out the way in which accounts should be presented?
Companies house
Discontinued operation difference?
UK GAAP requires on a line by line - IFRS allows one line
Accounting policies difference?
UK GAAP - must change to cost model when fair value cannot be measured reliably - IFRS there is no comment on this
Financial instruments - investments in shares?
UK GAAP measured at fair value if can be measured reliable through the profit and loss - IFRS through the profit and loss at fair value
Financial instruments - debt instruments?
UK GAAP - measured at amortised cost - IFRS amortised cost
Financial instruments - other?
UK GAAP - through the profit and loss at fair value if can be measured reliably - IFRS fair value through OCI
Impairment differences?
UK GAAP only recognised when there is evidence of impairment - IFRS only applies a loss allowance based on the level of credit risk
Derecognition of financial instruments differences?
UK GAAP uses simplified module for derecognition of assets
Inventory differences?
UK GAAP provides additional information on what should be included in production overheads - IFRS at the lower of cost or NRV
Joint ventures differences?
UK GAAP - three types, controlled operations, controlled assets controlled entities - IFRS only has two which are joint operations and joint ventures
Joint controlled entities difference?
UK GAAP this has to be consolidated
Investment property difference?
Must be measured at fair value - IFRS either at cost of Fair value
Non current assets differences?
UK GAAP there is no held for sale and assets are depreciated up until sold -IFRS requires held for sale to be moved to current assets
Useful life of assets review?
UK GAAP requires this to review only if evidence that they have changed - IFRS requires that this be reviewed annually
Borrowing costs differences?
UK GAAP option to capitalise - IFRS must capitalise if qualifying asset
Development costs differences?
UK GAAP development costs are allowed if conditions met - IFRS must capitalise on development costs
Intangible assets life?
UK GAAP must have finite useful economic life - IFRS can be treated as a finite useful life if the entity cannot foresee an end to the period of the intangibles life
Leases differences?
UK GAAP - finance lease or operating lease - IFRS lease liability and right of use asset
Provisions differences?
UK GAAP financial guarantee contracts are treated as provisions/contingent liabilities - IFRS treated as financial instruments
revenue differences?
UK GAAP - recognised at the stage of completion and when the risk and rewards are transferred - IFRS five step module of recognition
Government grants differences?
UK GAAP either performance or accrual model - when costs are incurred or over assets useful life - IFRS accruals model for grants
share based payment differences
UK GAAP requires fair value measurement of equity instruments - IFRS no comment on this matter
Employee differences?
UK GAAP termination is only recorded when there is a commitment - IFRS are recognised during restructuring or when the entity can withdraw offer
Income tax differences?
UK GAAP timing differences which is the difference between the taxable profits and accounting profits - IFRS based upon the tempoaray differences
Forex translation differences?
UK GAAP does not require separate reserve for FX on subsidiary - IFRS requires in a separate section in the equity
Events after the reporting date differences
UK GAAP dividends declare after can be presented under retained earnings
Related party differences?
UK GAAP only requires the amount to be shown as a total - IFRS Show a breakdown of the key management
Agriculture differences?
UK GAAP Allows the choice between cost module or fair value - IFRS at fair value
Group accounts differences?
UK GAAP - control is determined if they own more than 50% of the voting rights - IFRS controls investee if it has the rights to variable returns
Group consideration differences?
UK GAAP contingent consideration only included in goodwill calculation if probable that it will be incurred - IFRS if probability that payment will be made this is included as part of the goodwill
Additional shares purchases
UK GAAP not required to be remeasured - IFRS remeasured to fair value
Group goodwill differences?
UK GAAP if cannot be measured reliably it should be over 10 years - IFRS must be tested annually for impairment
negative goodwill differences?
UK GAAP entered as a negative asset - IFRS entered as bargin purchase
Group NIC differences?
UK GAAP measured using proportion method only - IFRS FV or proportion method
Associate differences?
UK GAAP any differences of amount paid and the share of the FV of net assets is classed as goodwill - IFRS no goodwill for associates
