Interim Managers Update

Transcription

1 Interim Managers Update Simone Taylor-Allkins Technical Advisory Services, ICAEW

2 Content Technical advisory services who are we, and how we can help you; Just arrived and just around the corner Audit exemption The New UK GAAP Ethics new support available to ICAEW members The resources that the experts use to give members/clients the advice they need;

3 Membership Support How can we help you?

4 Member Support Numbers

5 Advisory Services Contact Details Membership Enquiries Student Enquiries Technical Enquiries Money Laundering Enquiries Ethical Enquiries

6 How can we help you? Advisory Services Events/ Courses Business centre & library ICAEW Website Special interest groups Free Non- ICAEW helplines/ services ICAEW publications Apps Faculties Twitter

7 Technical/Ethics Advisory Services Who are we and what we offer?

8 The Team Kerry Westcott-Stewart Head of Technical Advisory Technical advisors Charlotte Derry David Stevens Madeleine Fone Nicky Swaisland Penny Buist Simone Taylor- Ray Farren Allkins

9 What we offer Our service is free as part of your membership; no additional fees apply. Ethics - Providing guidance on interpretation and compliance with ethical standards and guidelines. Technical - Discuss any issues on accounting, company law, charities and auditing. Money laundering - Advice on all aspects of complying with money laundering legislation. Support members - Help with a variety of problems and questions including, financial, family, work or personal concerns We can also support you with other issues relating to your career or personal life.

10 How we do it. Advisory Helpline: Monday Friday (Wednesday from 9.30) Closed on public holidays Helpsheets and FAQs Useful links new legislation, accounting and auditing standards, articles Articles in Audit & Beyond, Practicewire, Economia, Taxwire Twitter Attendance on key ICAEW events

11 Audit exemption SI 2012/2301

12 Does it need an audit? Financial years ending on or before 30 September 2012 Does the company qualify as small under the Companies Act 2006? (CA06 s382) YES Does the company have turnover not more than 6.5m? (CA06 s477) NO NO YES Does the company have gross assets not more than 3.26m? (CA06 s477) NO YES Is the company ineligible (for any part of year)? (CA06 s384/478) YES AUDIT REQUIRED NO NO Is the company part of a group? YES Does the group qualify as a small group (for the whole period)? (CA06 s383) NO YES Is the group ineligible (for any part of the year)? (CA06 s384/s478) YES NO Is the group aggregate turnover not more that 6.5m (net) or 7.8m (gross) (CA06 s479) NO YES Is the group aggregate gross assets not more that 3.26m (net) or 3.9m (gross) (CA06 s479) NO YES AUDIT EXEMPT

13 Does it need an audit?

14 Does it need an audit? Change 1 Change 2

15 The New UK GAAP FRS102

16 Which entities fall within the scope of FRS102? FRS 102 applies to financial statements that are intended to give a T&F view, unless adopting: Eu-adopted IFRS FRS101 Reduced Disclosure Framework, or FRSSE

17 When do I need to adopt the new standard? Accounting periods beginning on or after 1 January 2015 Early adoption is generally permitted for accounting periods ending on or after 31 December 2012 Entities that are within the scope of a SORP are only allowed if the requirements do not conflict with the requirements of the current SORP

18 Will I need to apply FRS102 retrospectively Comparative balance sheet and profit and loss will need restating An opening balance sheet will also need to be per FRS102 There are some limited exceptions which can be selected on an individual basis

19 What will a set of financial statements prepared under FRS102 need to contain? A statement of financial position Either; A statement of comprehensive income incorporating P&L and items of comprehensive income, or; A separate income statement and A separate statement of comprehensive income A statement of changes in equity A statement of cashflows (if required) Notes to financial statements

20 A sample of key differences between current UK GAAP and FRS102

21 Investment properties Current UK GAAP Revaluation to OMV each year Changes in value recognised in STRGL unless permanent diminution below cost The cost less depreciation model is NOT ALLOWED FRS102 In most cases requires revaluation each year Changes in value recognised in P&L account If fv cannot be reliably measured without undue cost or effort, the cost less depreciation model is used

22 Goodwill and intangible assets Current UK GAAP Maximum UEL 20 years or less Can be rebutted when longer or indefinite life can be justified FRS102 Must have a finite life UEL shall not exceed 5 years when no reliable estimate can be made

23 Merger accounting, excluding group reconstructions Current UK GAAP Required for business combinations if certain strict conditions met FRS102 Generally not permitted, but is required for certain business combinations involving public benefit entities

24 Financial Instruments Current UK GAAP Depends upon whether or not FRS26 is being adopted or not - CHOICE FRS102 Divides financial instruments into basic and other instruments Basic mostly measured at amortised cost Other mostly valued at fair value with movements recognised in the P&L account Entities can instead choose to apply the recognition and measurement requirements of full IFRS

25 Planning for FRS102

26 Date of transition Period commencing Period end Preparing for FRS January January December 2015

27 Ethics Advisory Services Money Laundering for the interim manager

28 Ethics and money laundering Ethics webinars The only way is ethics - Future webinar topics that might be of interest: Ethics why bother? Bribery Act AML Whistleblowing Conflicts - business

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30 Wrap up

31 Resources available to help

32 Where can I get more guidance ICAEW library research resource ICAEW website ICAEW faculties ICAEW Special Interest Groups Popular publications

33 Popular publications

34 Advisory Services Contact Details Membership Enquiries Student Enquiries Technical Enquiries Money Laundering Enquiries Ethical Enquiries

35 Any Questions

36 A world leader of the accountancy and finance profession