Webinar Replay – Changing Accounting Standards – The biggest shake-up to UKGAAP in a decade
Simon Rothenberg and Kris Siva guide you through the changes and cover the lessons learned and practical tips from the adoption of the IFRS standards and what you can do now to start the journey
On 13 December 2022, the Financial Reporting Council released the first draft of FRED82 (Financial Reporting Exposure Draft 82). The changes to FRS102 (current UKGAAP) and, to a lesser extent, FRS105 (Micro Entities accounting standards), as proposed by this draft were expected but will impact every company in the UK currently reporting under UKGAAP.
The main changes made under the current draft are as follows:
- Revised accounting requirements for revenue, bringing FRS102 and FRS105 broadly in line with IFRS15 – the updated IFRS revenue reporting standard. This means all entities in the UK must adopt the fixed step model with revenue recognition with some suitable simplifications; and
- Revised lease accounting requirements applying only to FRS102. This is based on the IFRS16 lease accounting standard and means all leases will appear “on balance sheet”, again with some suitable simplifications.
When will it apply and what do I need to know?
The expectation is that the final changes will be announced in 2024 with mandatory adoption for all entities for periods commencing on or after 1 January 2026. While this might feel like the distant future, the changes will impact the numbers reported for all companies and in many cases, will have a material effect on many key ratios and even profit recognised. Both revisions need a significant amount of data to be captured so that the new standards can be correctly accounted for. You should start this process as soon as possible to avoid impact on your business.
Simon Rothenberg and Kris Siva will guide you through the changes and cover the lessons learned and practical tips from the adoption of the IFRS standards and what you can do now to start the journey. This will ensure you understand the impact of the changes and allow you to start your preparations now.
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While we have taken every care to ensure that the information in this webinar is correct on the date held it has been prepared for general information purposes only and is not intended to amount to advice on which you should rely.