UK GAAP (2012) - A Look Back At New Requirements
Posted on Jan 09, 2014
During 2012 there were a number of new requirements being added to UK GAAP during 2012 - not least of which is some new terminology.
For example, the traditional "Balance Sheet" may now be called a "Statement of Financial Position", whereas the “Profit & Loss” report may also in some cases be referred to as a "Statement of Comprehensive Income" or SOCI for short.
Whilst the Balance Sheet remains pretty much the same, the Profit & Loss report now needs to show exceptional and super-exceptional items as part of main P&L - they are no longer to appear at the bottom below the operating profit. Cash flow must now also be summarised under headings labelled Operating, Finance & Investment. Other changes include intangible assets having to have a default life of 5 years unless clear proof can be provided otherwise, and investment property having to be measured at fair value with gains & losses identified in the period being reported.
Changes also require that grants being classed as deferred income rather than as a reducing asset balance. Unsurprisingly pension income is no longer seen as straight profit! Instead a pension liability discount rate needs applying to calculate the reality of the position, given it be either a profit or a loss in the current financial year.
Complex? No, not really. Aqilla customers can easily configure the new reports using the Aqilla Financial Report Designer. As ever there is heaps of information on-line regarding all the changes from all the normal sources including the ICAEW, CIMA, ACCA and HMRC.comments powered by Disqus
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