UK GAAP for Business and Practice

1 Executive summary 2005; 1.1 UK GAAP or IFRS?; 1.2 Recent developments; 1.3 Recent Financial Reporting Standards; 1.4 Recent Financial Reporting Exposure Drafts; 1.5 Earlier Financial Reporting Standards; 1.6 The Financial Reporting Standard for Smaller Entities (FRSSE); 1.7 Urgent Issues Task Force developments; 1.8 Company law changes; 1.9 Listed company reporting; 1.10 Financial Reporting Review Panel; 1.11 Statements of Recommended Practice (SORPs); 1.12 International Financial Reporting Standards; 2 The UK Regulatory Framework; 2.1 Companies Act 1985 requirements; 2.2 Financial Reporting Council (FRC); 2.3 Accounting Standards Board (ASB); 2.4 Urgent Issues Task Force (UITF); 2.5 Statements of Recommended Practice (SORPs); 2.6 Statement of Principles; 2.7 Companies (Audit, Investigations and Community Enterprise) Act 2004; 2.8 The Companies Act 1985 (Operating and Financial Review and Directors’ Report etc) Regulations 2005; 2.9 Companies Act 1985 (Investment Companies and Accounting and Audit Amendments) Regulations 2005; 2.10 Legal Opinion on Role of Accounting Standards and True and Fair; 2.11 Directors’ report; 2.12 Revision of defective accounts; 2.13 Financial Reporting Review Panel; 2.14 International Financial Reporting Standards; 3 Accounting policies and estimation techniques; 3.1 Objectives of FRS 18; 3.2 Concepts; 3.3 Definitions; 3.4 Examples; 3.5 Concepts and objectives – further comments; 3.6 Changes in accounting policies; 3.7 Estimation techniques; 3.8 Disclosures; 3.9 Illustration; 3.10 International Financial Reporting Standards; 4 Profit and loss account, Statement of total recognised gains and losses and balance sheet; 4.1 Introduction; 4.2 FRS 3 – The Profit and Loss Account; 4.3 Exceptional Items; 4.4 Extraordinary Items; 4.5 Discontinued Operations and Provisions; 4.6 Operations in the process of being discontinued; 4.7 Profit or loss on disposal of fixed assets; 4.8 FRS 3 – The Statement of total recognised gains and losses (STRGL); 4.9 FRS 3 – Other Statements; 4.10 Prior period adjustments; 4.11 Comparative figures; 4.12 International Financial Reporting Standards; 5 Cash Flow statements; 5.1 Background and scope; 5.2 Format and content - single companies; 5.3 Worked example - a single company using the indirect method; 5.4 Problem areas - single companies; 5.5 Group accounts considerations; 5.6 Worked example - a group; 5.7 Illustrations from published accounts; 5.8 Using cash flow statements; 5.9 International Financial Reporting Standards; 6 Reporting the substance of transactions; 6.1 Background; 6.2 The Substance of transactions; 6.3 Features of more complex transactions; 6.4 Applying the principles of FRS 5; 6.5 Recognition of assets and liabilities; 6.6 De-Recognition6.7 Relationship with other standards; 6.8 Disclosure Requirements; 6.9 Linked presentation for certain non-recourse finance arrangements; 6.10 Offset; 6.11 Consignment stocks; 6.12 Debt factoring and invoice discounting; 6.13 Sale and repurchase agreements; 6.14 Further complications; 6.15 International Financial Reporting Standards; 7 Converging UK GAAP with IFRS; 7.1 Terminology; 7.2 Recap; 7.3 Options for members of a group; 7.4 Application to different categories of companies; 7.5 Comparison of UK GAAP with IFRS; 7.6 True and fair requirement; 7.7 Converging UK GAAP with IFRS; 7.8 Urgent Issues Task Force Abstracts; 7.9 Extant standards; 8 Revenue recognition; 8.1 Introduction; 8.2 The Statement of Principles; 8.3 FRS 5, Application Note G; 8.4 Contracts for services and UITF Abstract 40; 8.5 Other aspects of UK GAAP; 8.6 Review Panel Press Notices; 8.7 Illustrations from published accounts; 8.8 International Financial Reporting Standards; 9 Employee benefits; 9.1 Directors’ remuneration – unlisted companies (other than small); 9.2 Directors’ remuneration – other disclosures; 9.3 Directors’ remuneration – small companies; 9.4 Retirement benefits – introduction; 9.5 Retirement benefits – Companies Act 1985 requirements; 9.6 Funding of pension arrangements; 9.7 Accounting for retirement benefits – FRS 17: Introduction; 9.8 FRS 17 – Transitional provisions; 9.9 FRS 17 – Full implementation; 9.10 International Financial Reporting Standards; 10 Share-based Payment; 10.1 Overview; 10.2 Employess share schemes- UITF abstract 17; 10.3 National Insurance Contributions on share option gains- UITF abstract 25; 10.4 Accounting for ESOP Trusts- UITF abstract 38; 10.5 Share-based payment; 10.6 International Financial Reporting Standards; 11 Taxation, including deferred tax; 11.1 Accounting for current tax; 11.2 Deferred tax – Introduction; 11.3 Accounting for Deferred Tax – FRS 19; 11.4 Accounting for Deferred Tax – FRS 19: Deferred Tax Assets; 11.5 Accounting for Deferred Tax – FRS 19: Disclosure requirements; 11.6 Accounting for Government grants; 11.7 SSAP 5 (Accounting for value added tax); 11.8 International Financial Reporting Standards; 12 Tangible Fixed Assets; 12.1 Introduction; 12.2 Tangible Fixed Assets – Overview of FRS 15; 12.3 Determining cost; 12.4 Capitalisation of Interest; 12.5 Revaluation; 12.6 Depreciation; 12.7 Website Development Costs; 12.8 Impairment; 12.9 Disposal of fixed assets; 12.10 UITF 5 – Transfers from current assets to fixed assets; 12.11 Investments properties (SSAP 19); 12.12 Government grants for capital expenditure; 12.13 International Financial Reporting Standards; 13 Intangible fixed assets, including goodwill; 13.1 Introduction; 13.2 Accounting for goodwill – FRS 10; 13.3 Intangible assets (other than goodwill); 13.4 UITF 27 – Revision to estimates of the useful economic life of goodwill and intangible assets; 13.5 FRS 10 Disclosure requirements – overview; 13.6 Accounting for research and Development expenditure; 13.7 International Financial Reporting Standards; 14 Hire purchase and leasing; 14.1 Introduction – Financing of fixed assets; 14.2 Hire purchase – Accounting for the hirer; 14.3 Lessee Accounting – Background; 14.4 Lessee Accounting – Classification; 14.5 Lessee Accounting – Finance Leases and hire purchase contracts; 14.6 Lessee Accounting – Operating Leases; 14.7 Lessee Accounting Disclosures – Finance Leases; 14.8 Lessee Accounting Disclosures – Operating Leases; 14.9 Lease Classification and FRS 5; 14.10Lessor Accounting _ Background; 14.11 Lessor Accounting – Operating Leases; 14.12 Lessor Accounting – Finance Leases; 14.13 Manufacturer/Dealer Lessor; 14.14 Lessor Accounting – Disclosure Requirements; 14.15 Sale and Leaseback; 14.16 UITF 28 – Operating Lease Incentives; 14.17 International Financial Reporting Standards; 15 Current assets; 15.1 Stocks and Long-term contracts – overview; 15.2 Short-term stocks and work-in-progress; 15.3 Long-term contracts; 15.4 Debtors; 15.5 Current asset investments; 15.6 Cash; 15.7 International Financial Reporting Standards; 16 Loans, Provisions, contingencies and commitments; 16.1 Introduction; 16.2 Creditors and loans; 16.3 Provisions; 16.4 Contingencies; 16.5 Commitments; 16.6 International Financial Reporting Standards; 17 Financial instruments including creditors and loans; 17.1 Overview; 17.2 FRS 4, Capital instruments – shareholders’ funds; 17.3 FRS 4 , Capital instruments – debt; 17.4 FRS 25, Financial instruments: disclosure and presentation; 17.5 International Financial Reporting Standards; 18 Shareholders’ funds and dividends; 18.1 Introduction; 18.2 Share capital disclosures – Companies Act 1985; 18.3 Reserves – categories; 18.4 Permitted reserves movements; 18.5 FRS 25 Financial instruments: disclosure and presentation; 18.6 Purchase and redemption of shares – CA 85 rules; 18.7 Distributable profits; 18.8 International Financial Reporting Standards; 19 Related Party Transactions, contingencies, commitments and post balance sheet events; 19.1 Introduction to FRS 8; 19.2 Identifying related parties; 19.3 Related Party Transactions – Definitions and examples; 19.4 Disclosure requirements; 19.5 Companies Act 1985 – Directors’ interests in contracts; 19.6 International Financial Reporting Standards; 20 Events after the balance sheet date; 20.1 SSAP 17 – Post balance sheet events; 20.2 FRS 21 – Events after the balance sheet date; 21 Analysis of Accounts – 4: Segmental Reporting; 21.1 The need for segmental analysis; 21.2 Companies act 1985 requirements; 21.3 UK listing authority requirements; 21.4 SSAP 25 – Segmental reporting; 21.5 Terminology; 21.6 Disclosure requirements; 21.7 Relaxations for smaller entities; 21.8 International Financial Reporting Standards; 22 Accounting for SMEs and using the FRSSE; 22.1 Reporting Requirements – An overview; 22.2 Statutory Definitions; 22.3 Shorter form of Accounts for shareholders; 22.4 The financial reporting standard for smaller entities (FRSSE) – overview; 22.5 Using the FRSSE – Accounting and disclosure issues; 22.6 Using the FRSSE (effective January 2005) – Accounting And Disclosure Issues; 23 Listed company reporting; 23.1 Introduction; 23.2 Fully listed or AIM – who makes the rules?; 23.3 Members of a listed group – UK GAAP or IFRS?; 23.4 Directors’ remuneration – additional considerations; 23.5 Operating and Financial Review (OFR); 23.6 Financial Reporting Review Panel (FRRP); 23.7 International Financial Reporting Standards specific to listed companies; 24 Limited liability partnerships; 24.1 Introduction; 24.2 Legal and administrative matters; 24.3 Accounting and audit; 24.4 Statement of recommended practice (SORP); 24.5 Summary – comparisons with unlimited partnerships and limited companies; 24.6 International Financial Reporting Standards; 25 FRS 2 – Accounting for subsidiary undertakings; 25.1 Requirement to prepare consolidated accounts; 25.2 Definitions – parent undertaking and subsidiary undertaking; 25.3 Dominant influence and managed on a unified basis; 25.3 a) Dominant influences; 25.3 b) Managed on a unified basis; 25.3c) Amendment to FRS 2; 26 Acquisition accounting, fair values and business disposals; 26.1 Accounting for business combinations; 26.2 Features of acquisition accounting; 26.3 Fair values and acquisition accounting; 26.4 The merger reserve (CA 1985, s 131); 26.5 Acquisition accounting illustration; 26.6 Acquisition accounting disclosures; 26.7Changes in stake26.8 Accounting for disposals of shares in subsidiary undertakings; 26.9 Realisation of the merger reserve; 26.10 International Financial Reporting Standards; 27 Associates and joint ventures; 27.1 Introduction; 27.2 Regulatory environment – overview; 27.3 Classification of fixed asset investments; 27.4 Cost method and equity method compared – an introduction; 27.5 Investments in subsidiaries; 27.6 Associates; 27.7 Joint ventures; 27.8 Acquisitions and disposals; 27.9 Commencement or cessation of an associate or joint venture relationship; 27.10 Loss-making associates and joint ventures; 27.11 Joint arrangements not entities (JANEs); 27.12 Investment funds; 27.13 Investor not preparing consolidated accounts; 27.14 International Financial Reporting Standards; 28 Accounting for overseas operations; 28.1 Introduction; 28.2 Accounts of individual companies; 28.3 Consolidation of foreign subsidiaries – an introduction; 28.4 Closing rate/net investment method; 28.5 Temporal method; 28.6 Equity investments financed by foreign borrowings; 28.7 Foreign braches; 28.9 Disclosures in financial statements; 28.10 International Financial Reporting Standards / FRS 23; 29 Converging UK GAAP with IFRS – the road ahead; 29.1Convergence experience to date; 29.2 Progress during 2005; 29.3 2006 and beyond; Appendices; 1 Implementation dates for unlisted companies; 2 UK GAAP status report; Extant IASs and IFRSs; Useful website addresses