UK Variants

Question 1

What is FRS105

Answer 1

Simplified version of FRS102 but only for micro entities

Balance Sheet and Profit & Loss
No deferred tax, capitalising borrowing costs, assets held at cost not fair value

Question 2

What is FRS102?

Answer 2

FRS 102 is a new standard entitled “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. It replaces current UK GAAP, and its implementation will have a significant impact on the financial statements of those required to adopt it.

Standard for SME’s in the UK & Ireland

Must not exceed two out of three:
Turnover: £6.5m
Assets: £2.6m
Employees: 50

Question 3

Are borrowing costs capitalised under FRS102

Answer 3

They can be capitalised under FRS102 but not under IFRS for SME’s

Question 4

Are research and development costs capitalised under FRS102

Answer 4

This is a decision and either can be capitalised (if conditions are met) or expensed.

Under IFRS for SMEs must be expensed

Question 5

How are Government Grants dealt with under FRS102

Answer 5

Accruals or performance model both fine

Question 6

Are you able to use a combination of IFRS for SMEs and FRS102

Answer 6

No, not consistent

Can choose within the standard such as borrowing and development costs

Question 7

How is goodwill treated under FRS102

Answer 7

Either the full or partial method

Question 8

How are investment properties dealt with

Answer 8

IFRS for SMEs held at fair value; gain or loss recognised in the income statement