Accounts Production Advanced Release Notes 2016
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Contents 1 What's New 4 Branding update 4 Interactive Reporting (Beta Feature) 4 Charities SORP 2015 for FRSSE accounts 5 FRS 102 and Pensions 6 FRS 102 for LLPs 7 Disclosure data for group accounts 8 2 Sage software support 10 Learning Centre 10 Contacting sage software support 11
1 What's New This release contains new features and enhancements, including: Branding update The first thing you'll notice after upgrading to Sage APA 2016 is a new look and feel. You can choose from one of three themes: White, light, or dark. We've made the dark theme the default, and this is what you'll see the first time you open your updated Sage APA. It's easy to change though. Click View > Colour Theme > choose a new theme from the list. Interactive Reporting (Beta Feature) This update also includes an exciting new beta feature we'd love your feedback on. We know that for many customers, finding their way around the different ROPs, ReportPads, and Headings can be a bit of a headache. We've listened and are now pleased to introduce a new way of working with these settings. 4
Release Notes We've combined all of the existing ROPs, ReportPads, and Headings and you now access these from a new window. Click Beta Feature > Interactive Reporting. The Beta feature is currently available for clients based on the FRSLTD master database. As we develop the beta feature, utilising the feedback you provide, we will look to include it in more master databases. We'd love your feedback on this new Interactive Reporting window. Please click the link at the top of the window and tell us your experiences. Charities SORP 2015 for FRSSE accounts This release includes an update for the new SORP Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities (the FRSSE) (effective 1 January 2015).' This SORP is only applicable to those applying FRSSE (effective January 2015) in the current charities master, and so any client applying an earlier version of the FRSSE or full UK GAAP will still have to comply with SORP 2005. SORP 2015 will be automatically applied in the accounts of any client that has indicated they are applying FRSSE 2015 via the Report Option rop.sta.gen.afr. 5
1 What's New The key disclosure changes from the previous SORP are: SORP 2015 has introduced terminology changes within the SoFA, e.g. Voluntary income has become Donations and legacies. In addition, there is no longer a separate line item for Governance costs ; these now form part of the support costs that are included within Expenditure on charitable activities. The accompanying notes have also been amended to reflect this. The summary Income and expenditure account has been rewritten so that it follows the example format given in the SORP 2015. This will only need to be disclosed separately if the user feels the SoFA does not meet company law requirements, e.g. there is tax to disclose, or the user wishes to disclose the split between realised and unrealised gains on investments as these both appear within Gains/losses on investments within Other recognised gains and losses in the SoFA. SORP 2015 has introduced Mixed motive investments as a new class of investment asset. This will appear as a separate line item on the balance sheet, as with programme related investments, and a new note has been created for this. There is a should requirement to disclose movements on deferred income and give reasons as to why income has been deferred. Although not a departure from the SORP if not disclosed, it is considered best practice, therefore a new note has been created for this which can be excluded from the notes via Report Option rop.acc.i.def. There is now a requirement to disclose comparative information by separate class of fund for each item on the SoFA, e.g. by restricted, unrestricted, endowment funds, which may be presented on the face of the SoFA or in the notes. We have included this additional disclosure requirement in the notes of the accounts. This information will appear automatically based on nominal postings made. FRS 102 and Pensions FRS 102 and Statement of Recommended Practice (Revised September 2014) The FRC has revised the financial reporting framework in the UK and Republic of Ireland for unlisted entities through the introduction of FRS 102. Importantly this new standard specifically addresses the financial statements for pension schemes by setting out the required content of pension scheme financial statements, the basis of valuing pension scheme assets, and treatment of actuarial liabilities. It requires new disclosures in relation to fair value determination, investment risks, and a separate report alongside the financial statements for actuarial liabilities. As a result, the pensions SORP has been revised to give regard to FRS 102. The key changes are as follows: Fair value determination FRS 102 contains specific guidance on the approach to determining fair value of pension scheme investment assets, requiring assets to be measured at fair value with the exception of annuity insurance policies. FRS 102 requires the 6
Release Notes use of a hierarchy to estimate the fair value together with disclosures on how the hierarchy categories have been determined and how the categories relate to each investment asset. Investment risk disclosures FRS 102 requires certain disclosures in relation to risks from financial instruments sufficient to allow evaluation of the nature and extent of credit risk and market risk arising from financial instruments to which the retirement benefit plan is exposed at the end of the reporting period. Trustees annual report Under SORP 2007 a separate Investment report and Compliance statement were required. These reports are not required under SORP 2015 but the disclosures are now met within the contents of the Trustees report. Key management personnel FRS 102 includes key management personnel within the definition of a related party, and therefore requires the associated disclosures. In the context of pension schemes, key management personnel are normally the trustees or trustee directors. Transitional provisions FRS 102 requires the first set of financial statements that are prepared in accordance with FRS 102 to be prepared on the basis that FRS 102 always applied to the current and previous accounting periods. An entity should explain how the transition from its previous financial reporting framework to this FRS affected its reported financial position and financial performance. Accounting policies Any changes to accounting policies in order to comply with FRS 102 will need to be disclosed. The main change to accounting policies for pension schemes arising from the revised SORP relates to the requirement under FRS 102 to report annuity policies at the amount of the related obligation. Comparative amounts FRS 102 requires comparative information for all amounts presented in the current period s financial statements. However, the SORP recommends that comparative information need not be provided for items included in the investment reconciliation table. FRS 102 for LLPs This release includes a new master: LLP102. This master allows the preparation of LLP accounts under FRS 102 and SORP 2014. Key changes from the LLP master are brought about by the introduction of FRS 102 disclosures into the accounts. For LLP specific areas, such as the members interests we have used consistent chart codes and functionality as was available in the LLP master. We would still advise referring to the list report for guidance on the chart and some of these postings. Some key LLP specific areas of change to be aware of are as follows: 7
1 What's New Reconciliation of members interests SORP 2014 requires this reconciliation as it did previously. Separately FRS 102 requires a statement of changes in equity as a primary statement to the accounts, which in the case of an LLP would be a reconciliation of the Members other interests balances. The same movements shown in this, would then need to be repeated in the reconciliation of members interests, alongside the movements in loans and other debts due to members, in a note to the accounts. Because of this, the SORP gives the option to replace the SOCIE with the Reconciliation of members interests, as long as a full comparative table is also presented. In SAPA we have applied this option automatically so the reconciliation of members interests will now always be presented as a primary statement in a set of FRS 102 LLP accounts. Members report There is no longer a requirement to include a separate members report, but the disclosures required by the SORP must still be made somewhere in the accounts. This is discussed in more detail in the members report section of this guide. Transition to FRS 102 In the first set of accounts reported under FRS 102 a note must be included detailing how the transition has affected the equity and profit or loss previously disclosed in the accounts. We have created a new journal type, FRS, to allow adjustments to be posted and to automatically populate this note. Members profit share database screen We have redesigned this area of the database in the LLP102 master to allow amendments to previous years allocations. This gives greater freedom when amending comparative figures for your current accounts. Disclosure data for group accounts Based on your feedback, we've enabled the Disclosure Data screen in our group accounts masters both GROUP and FRSGRP. Previously, if preparing group accounts, any memo code postings had to be made as MEM type journals to the correct period in the Document Postings screen. The Disclosure Data screen is a clearer and simpler alternative to the MEM journals. Disclosure data must still be entered in the correct period to which it applies (1=Parent company, 2=Consolidation adjustments, 3=subsidiaries), but to make it easier to enter we've added a dropdown box so you can choose the appropriate period. 8
Release Notes Entering data in these screens will create a MEM type journal in the correct period as usual, and the two will interact, so changes made via document postings will be seen in the disclosure data screens and vice versa. The disclosure data screens will also be automatically populated on consolidation, following the preconsolidation routine, so there is no data entry required prior to making consolidation adjustments. 9
2 Sage software support Our software support team are here to provide you with assistance should you run into difficulties using Sage Accounts Production Advanced. You may be able to find the answer to your query in the Help system provided with Sage APA without having to contact Sage Software Support. You can open the Help by pressing the F1 key at any time when running Sage APA or by choosing Contents from the Help menu. There may be additional information or support material that has been published since the creation of this document. You can find more support material at https://support.sage.co.uk Learning Centre You can find a lot of help for our ixbrl tagging solutions at the ixbrl Learning Centre. Visit the ixbrl Learning Centre at https://sage-exchange.co.uk/resources/ixbrlcompliance/learning-centre Sage Assisted Tagging also has a Help system full of topics to help you when you're not sure about something. When running Sage Assisted Tagging, click on the Read some instructions links to open the help. In addition to this you ll still have access to our Support website https://support.sage.co.uk. Please have the following information available if you do contact Sage Software Support: 10
Release Notes Your Sage Account Number. A brief description of the problem including the exact text of any error messages received. The version number of the program and the formats you are using, e.g. v14.00. This can be obtained by selecting About... from the Help menu. The name of the Windows platform that you are using, e.g. Windows 7, Windows 8 etc. Resolving your query will be faster if you can also provide the answers to the following questions: Is the program being used on a single computer or is it being shared across a network? At what stage in the installation process are you? Contacting sage software support You can contact Sage Software Support in the following ways: Tel 0845 111 11 11 then following the prompts for Sage APA support Fax 0845 245 02 85 Post Sage Software Support Building 1 Exchange Quay Salford Quays Manchester email Web M5 3EA accountants.support@sage.com https://support.sage.co.uk 11