In the UK, preparing financial statements is a legal requirement for companies, and with that comes the responsibility to ensure that those financial statements are compliant not only with the latest legislation, but to adhere to the relevant reporting standards that a company has adopted, such as UK Generally Accepted Accounting Principles (UK GAAP) or International Financial Reporting Standards (IFRS) and the respective listing rules for those companies listed on an exchange.
Navigating the complexities of the financial reporting frameworks in the UK and ensuring you are up to date with any changes in legislation and listing obligations can be challenging. At One Advisory, we look to take that pain away and support clients of all sizes with their financial reporting responsibilities, be it their need to prepare IFRS-compliant financial statements for audit or simply assisting on a technical reporting requirement on which they require specialist assistance.
International Financial Reporting Standards (IFRS)
London’s Main Market companies as well as most AIM-listed companies are required to prepare consolidated financial statements in accordance with UK-adopted IFRS.
Keeping abreast of the ever-evolving IFRS standards can be daunting and our team of IFRS experts is at hand to help. We support our clients in their preparation of accurate and fully compliant IFRS financial statements for groups and private companies ahead of their audit by their chosen external auditor.
Our team can also provide expert guidance on complex issues such as convertible loan notes, offer insights into the implications on financial reporting of choices made and assist in the interpretation and application of IFRS principles. Click here to learn more about our IFRS reporting and technical support.
Ultimately, One Advisory is here to support you to ensure that your financial statements not only meet the regulatory requirements, but we can take a lead role in dealing with your external audit team to get the financial statements through to completion.
Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)
FRS 102-compliant financial statements are typically prepared by small and medium-sized entities (SMEs), as defined by the Companies Act 2006.
Derived from the principles of IFRS Standards, FRS 102 introduces significant modifications to both the eligibility criteria for entities applying the standard and the corresponding accounting treatments.
Any entity or group, including parent and subsidiary companies within a listed group, may choose to apply FRS 102.
If you need assistance in preparing financial statements compliant with FRS 102 or wish to discuss disclosure exemptions available to a parent or subsidiary within a group, we are here to help.
Financial Reporting Standard applicable in the UK and Republic of Ireland (Section 1A)
Companies falling under the category of small entities must adhere to the small entity requirements outlined in FRS 102. A specific section within FRS 102 grants exemptions to small entities from the majority of disclosure requirements, although they are still obligated to follow the recognition and measurement rules. Micro-entities that cannot apply FRS 105 due to being part of a group also typically apply FRS 102 Section 1A.
If you need assistance in preparing company reports under this regime, reach out and see how we can assist you.
FRS 105: The Financial Reporting Standard Applicable to the Micro-Entities Regime
The accounting standard FRS 105 is designed for micro-entities, which are typically the smallest companies. Micro-entities that are not part of a group can benefit from using FRS 105 due to its considerably less onerous and simplified financial reporting requirements compared to more comprehensive standards like FRS 102.
If you require assistance in preparing company reports under this framework, we can assist. One Advisory does not provide taxation advice or audit services.
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