A practical guide to UK accounting and auditing standards / Steve Collings.

Format:

Book

Author/Creator:

Collings, Steve, author.

Language:

English

Subjects (All):

Accounting--Standards.

Accounting.

Auditing.

Finance--Great Britain.

Finance.

Physical Description:

1 online resource (1597 pages)

Edition:

1st ed.

Place of Publication:

London : Bloomsbury Professional, 2018.

Summary:

Including UK GAAP amendments arising from the FRC's recent triennial review , this book takes the theory contained in accounting standards, auditing standards and company law and shows how to put it into practice with the help of examples, case studies and real-life excerpts from financial statements.The aim of the book is not only to inform practitioners what the new standards say, but to interpret the meaning, analyse the differences between old and new GAAP and show the impact of these differences on the financial statements.The book also covers: Companies Act 2006 and related statutory instruments FRS 102 The Financial Reporting Standard applicable in the UK and the Republic of Ireland (September 2015 and March 2018) FRS 105 The Financial Reporting Standard applicable to the Micro-entities regime (July 2015 and March 2018) Requirements of International Financial Reporting Standards 2016 Auditing Standards (ISA (UK) 200 - ISA (UK) 805, including June 2016 revisions and July 2017 updates)

Contents:

Intro

Preface

Table of Statutes, Statutory Instruments and Other Guidance

Table of Examples

Introduction

Accounting requirements under the Companies Act 2006

Determining the size of company or group

True and fair requirements

Small entities

Micro-entities

FRC True and Fair document

Structure of UK GAAP

FRS 100 Application of Financial Reporting Requirements

First-time adoption of FRS 100

FRS 101 Reduced Disclosure Framework

Protocol to be followed for FRS 101

FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland

Triennial review of FRS 102

FRS 103 Insurance Contracts

FRS 104 Interim Financial Reporting

Contents of an interim financial report

Significant events and transactions

Other disclosures

Transitions from another framework

Periods for which interim reports are presented

Materiality

Recognition and measurement issues

FRS 105 The Financial Reporting Standard applicable to the Micro‑entities Regime

Disclosure requirements for small companies

Disclosures required by law

Changes in presentation, accounting policies or correction of errors

Encouraged disclosures

Abridged financial statements

Member consent

Statement to the Registrar of Companies

Form of abridged financial statements

Filing requirements at Companies House

Small companies

Medium-sized companies

Unquoted companies

Quoted companies

Penalties for late filing

Scope of Section 2

Objective of financial statements

Qualitative characteristics

Understandability

Relevance

Reliability

Substance over form

Prudence

Completeness

Comparability

Timeliness

Balance between benefit and cost

IASB's qualitative characteristics.

The balance sheet (statement of financial position)

Assets

Liabilities

Equity

Profit and loss account (income statement)

Recognition of assets, liabilities, income and expenses

Measurement of assets, liabilities, income and expenses

Historic cost

Fair value

Pervasive recognition and measurement principles

Accruals basis of accounting

Recognition in the financial statements

Income

Expenses

Total comprehensive income and profit or loss

Subsequent measurement

Financial assets and financial liabilities

Non-financial assets

Other liabilities

Offsetting

Valuation technique

No active market

Scope of UK GAAP

FRS 102

FRS 105

IAS 1

The true and fair view requirements

True and fair requirements for small and micro-entities

Statement of compliance

Departure from a requirement of FRS 102

Departure from a requirement of IFRS

Statement of compliance by small and micro-entities

Going concern

Material uncertainties related to going concern

Other disclosures: solvency and liquidity risks

The assessment process

Departure from the going concern basis of accounting

Frequency of reporting

Consistency of presentation

Comparative information

Materiality and aggregation

Complete set of financial statements

Balance sheet

Format 1 balance sheet

Format 2 balance sheet

Presentation of items in the balance sheet

Other balance sheet issues

Profit and loss account (income statement) and statement of comprehensive income

Formats of the profit and loss account

Total comprehensive income

Exceptional items

Discontinued operations

Statement of income and retained earnings

Entities with no items of other comprehensive income

Statement of changes in equity.

Purpose of the statement of changes in equity

Items to be presented in the statement of changes in equity

Capital contributions

Cash flow statements

Structure of the cash flow statement

Indirect and direct method

Non-cash transactions

Components of cash and cash equivalents

Cash and cash equivalents not available for use by the entity

Net debt reconciliation

Abridged balance sheets

Abridged profit and loss account

Adapted financial statements

Adapted profit and loss account

Adapted balance sheet

Identification of the financial statements

Auditor's considerations

Presentation of consolidated financial statements

Exclusions from presenting consolidated financial statements

Control

Obtaining control

Potential voting rights

Dominant influence

Dissimilar activities

Undue expense or delay

Exclusions from consolidation

Special purpose entities

Consolidation procedures

Process of consolidation

Intra-group balances and transactions

Reporting dates

Accounting policies

Acquisitions and disposals of subsidiaries

Disposals of interests in a subsidiary

Deemed disposals

Acquisition achieved in stages

Non-controlling interest in subsidiaries

Disclosures: consolidated financial statements

Exempt groups

Excluded subsidiaries

Individual and separate financial statements

Accounting policies in the separate financial statements

Disclosures in the separate financial statements

Exchanges of businesses or other non-monetary assets

Intermediate payment arrangements

Accounting for intermediate payment arrangements

Disclosures in individual and separate financial statements

Selecting and applying accounting policies.

Transactions, events and conditions not addressed by an FRS

GAAP hierarchy

Consistency of accounting policies

Changes in accounting policy

Revaluations of assets

Accounting for a change in accounting policy

Disclosure requirements: changes in accounting policy

Changes due to an amendment in an FRS

Voluntary changes

Changes in accounting estimates

Disclosure requirements: changes in accounting estimates

Error correction

Accounting for error correction

Disclosure of prior period errors

Disclosure of prior period errors under IAS 8

Impracticability

Auditing accounting policies, estimates and error correction

Auditor's objectives

Correction of errors

Scope

IAS 39

IFRS 9

Accounting policy choice

Basic financial instruments: introduction

Examples of basic financial instruments

Examples of non-basic financial instruments

Instruments scoped out of Section 11

Accounting for basic financial instruments

Initial recognition

Directors' loans to a small entity

Impairment

Derecognition

Financial assets

Financial liabilities

Presentation

Disclosures

Other financial instruments issues

Excluded financial instruments

Initial recognition of financial assets and financial liabilities

Derivative financial instruments

Hedge accounting

Hedged items

Hedging instruments

Conditions for hedge accounting

Qualifying hedging relationships

Fair value hedge

Cash flow hedge

Hedge of a net investment in a foreign operation

Auditing financial instruments.

Auditor's objectives

Auditing complex financial instruments

Developing estimates

Auditing disclosures

Written representations

IAS 2

Consignment inventory

Measurement of inventories

Cost of inventories

Production overheads

Deferred settlement terms

Joint products and by-products

Other costs included in inventories

Excluded costs

Costs of inventories for a service provider

Costs of agricultural produce harvested from biological assets

Techniques for measuring cost

Standard cost method

Retail method

Most recent purchase price

Cost formulas

First in, first out method (FIFO)

Weighted average cost method

Inventory impairment

Recognition of inventories as an expense

Disclosure requirements

Auditing inventories

Procedures prior to the inventory count

Attendance at inventory count

Typical procedures during attendance at inventory count

Audit procedures at the final fieldwork stage

Standard costs used: audit procedures

Cut-off

Perpetual (continuous) inventory systems

Simple investments

Investments in another group entity

Deferred tax

Investments in subsidiaries

Impairment of a subsidiary

Investments in associates

Scope: FRS 102

Scope: FRS 105

Scope IAS 28

Definition of an associate

Ownership interest of more than 20% but entity is not treated as an associate

Ownership interest of less than 20% but entity is treated as an associate

Ceasing to have significant influence

Measurement - accounting policy election

Cost model

Equity method of accounting

Fair value models

Companies Act 2006

IAS 28

Investments in joint ventures

FRS 102.

FRS 105 and IAS 28.

Notes:

Description based on print version record.

ISBN:

9781526503329

1526503328

9781526503336

1526503336