24 - UK GAAP

According "FRS 100 Application of Financial Reporting Requirements": Listed groups must prepare accounting accounts under:

IFRS.

Listed groups must prepare accounts under IFRS, however

the companies within the group can take advantage of disclosure exemptions outlined in FRS 101 when preparing their individual FSs.

Non-listed UK companies will apply FRS 102 unless:

Voluntary choose to apply IFRS. | or they are a micro-entity and choose to apply FRS 105*

FRS 102 - title:

The Financial Reporting Standard Applicable in the UK and the ROI.

Concepts differences

Framework does not identify these as separate qualitative characteristics. | FRS 102 identifies qualitative characteristics of materiality, substance over form and prudence.

Formats

IAS 1 provides recommended formats. | FRS 102 prepared in accordance with Companies Act 2006, therefore prescribed format.

Capital grants

Choice of using either the deferred income or netting off method. | It prescribes the deferred income method only.

Deferred tax

Conceptualises that through the SFP. | Conceptualises through the SPL.

Goodwill arising on associate

Goodwill arising on an associate is included within its CA and is not amortised. || Implicit goodwill arising on an associate should be amortised.

Development costs

When the criteria are met, development costs must be capitalised. | There is a choice to capitalise or expense development costs.

Useful lives of intangibles

Intangibles can have an indefinite useful economic life. | All intangibles have finite useful life, with a rebuttable presumption that this does not exceed 10 years.

Goodwill amortisation

Goodwill is not amortised. | Goodwill is amortised over its useful life.

Bargain purchase or negative goodwill.

Gain on bargain purchases is recognised in PoL. | Negative goodwill is shown as negative asset on the face of the SFP.

Acquisition costs

Expensed to the PoL. | Added to consideration in goodwill calculation.

Contingent consideration

Include a weighted average contingent consideration in goodwill calculation at FV. | If probable then include estimated amount of contingent consideration payable in goodwill calculation.

NCI

Choice of FV method or proportionate method. | Only the proportionate method is allowed.

Assets held for sale

When criteria are met, held for sale assets are presented as current | and depreciation ceases. ||| No Held-For-Sale category exists, | so assets continue to be depreciated up until disposal.

Approach to financial instruments by IFRS.

Classifies financial assets based on contractual CFs ' and business model.

Impairment (IFRS Standards vs FRS 102)

Adopts an expected loss approach. | Adopts an incurred loss approach.

Specific FRS 102 exclusion regarding Consolidated Financial Statements.

Subsidiary should be excluded from consolidation where severe long-term restrictions apply | or where subsidiary is held exclusively for resale.

A company is exempt from the requirement of prepare individual accounts for a financial year if:

It is itself a subsidiary undertaking. | It has been dormant throughout the whole of that year. | Its parent undertaking is established under the law of an EEA State.

If a company is not subject to the small companies' regime, a parent company must prepare Group Accounts unless:

if is itself a wholly owned subsidiary of a parent undertaking. | or, under section 405 of Companies Act, ALL of its subsidiary undertakings could be excluded from consolidation.

A subsidiary undertaking may be excluded from consolidation where:

severe long-term Restrictions substantially hindered the exercise of the rights of the parent company over the assets or management of that undertaking. | The interest is held Exclusively with a view to subsequent release. |

Discontinued operations

Shown as one line on the PoL with further detail provided in the notes to the FSs. || Shown in a separate column in the income statement.