UK GAAP vs IFRS

Question 1

Presentation of FS

Answer 1

IFRS: recommended formats
FRS102: Prep in accordance with Companies Act 2006- prescribed format

Question 2

Inventory

Answer 2

IFRS: NRV is based on FV achieved in open market

FRS102: No NRV but estimated selling price less cost to complete and sell

Question 3

NCA held for sale and discontinued op

Answer 3

IFRS: Discontinued op in one line on SPL with detail in notes. Held for sale assets become current and no longer depreciated

FRS102: Separate column in income statement. Held for sale doesn’t exist

Question 4

Borrowing costs

Answer 4

IFRS: eligible borrowing is capitalised

FRS102: choice to capitalise or expense

Question 5

Intangible assets

Answer 5

IFRS: When criteria met development costs capitalised. Also indefinite UEL

FRS102: choice to capitalise or exepnse. All have finite life with rebuttle presumption of 10 yrs

Question 6

Lease

Answer 6

IFRS: Leased assets more than 12 months capitalised and recognised as ROU

FRS102: difference in operating/finance lease

finance- lease transfers risks/rewards to lessee
Operating- charged to PL straight line