UK GAAP 2019

UK GAAP 2019

by Ernst & Young LLP
Released April 2019
Publisher(s): Wiley
ISBN: 9781119558262

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Book description

UK GAAP 2019 provides a comprehensive guide to interpreting and implementing UK accounting standards, particularly:

  • FRS 100: Application of Financial Reporting Requirements
  • FRS 101: Reduced Disclosure Framework — Disclosure exemptions from EU-adopted IFRS for qualifying entities
  • FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland
  • FRS 103: Insurance Contracts
  • FRS 104: Interim Financial Reporting

This book is an essential tool for anyone applying, auditing, interpreting, regulating, studying or teaching those accounting standards.

Written by the financial reporting professionals from the Financial Reporting Group of EY, this book provides a clear explanation of the UK GAAP accounting requirements which apply in 2019 and will prove invaluable in implementing these requirements. It also addresses the requirements of the UK Companies Act and relevant statutory instruments, as well as practical worked examples.

Also available is International GAAP® 2019 — a three volume comprehensive guide to interpreting International Financial Reporting Standards (IFRS), setting IFRS in a relevant business context and providing insight into how complex practical issues should be resolved in the real world of global financial reporting.

Table of contents

  1. Cover
  2. About this book
  3. Preface
  4. References and abbreviations
  5. Authoritative literature
  6. Chapter 1: FRS 100 – Application of financial reporting requirements
    1. 1 INTRODUCTION
    2. 2 SUMMARY OF FRS 100
    3. 3 DEFINITIONS
    4. 4 FRS 100 – APPLICATION OF FINANCIAL REPORTING REQUIREMENTS
    5. 5 TRANSITION
    6. 6 COMPANIES ACT 2006
    7. 7 FINANCIAL REPORTING COUNCIL (FRC) AND ACCOUNTING STANDARD SETTING
    8. REFERENCES
  7. Chapter 2: FRS 101 – Reduced disclosure framework
    1. 1 INTRODUCTION
    2. 2 SCOPE OF FRS 101
    3. 3 TRANSITION TO FRS 101
    4. 4 MEASUREMENT DIFFERENCES BETWEEN FRS 101 AND EU-ADOPTED IFRS
    5. 5 PRESENTATIONAL DIFFERENCES BETWEEN FRS 101 AND EU-ADOPTED IFRS
    6. 6 DISCLOSURE EXEMPTIONS FOR QUALIFYING ENTITIES
    7. 7 ADDITIONAL COMPANIES ACT DISCLOSURES
    8. 8. FUTURE CHANGES TO IFRS AND THEIR IMPACT ON FRS 101
    9. REFERENCES
  8. Chapter 3: Scope of FRS 102
    1. 1 INTRODUCTION
    2. 2 SCOPE OF FRS 102
    3. 3 REDUCED DISCLOSURE FRAMEWORK
    4. 4 CA 2006 REQUIREMENTS
    5. REFERENCES
  9. Chapter 4: Concepts and pervasive principles
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 2 AND IFRS
    3. 3 THE CONCEPTS AND PERVASIVE PRINCIPLES OF SECTION 2
    4. REFERENCES
  10. Chapter 5: FRS 102 – Small entities
    1. 1 INTRODUCTION
    2. 2 SUMMARY OF SECTION 1A (AND RELATED CA 2006 REQUIREMENTS)
    3. 3 KEY DEFINITIONS AND ABBREVIATIONS
    4. 4 SCOPE OF SMALL ENTITIES REGIME
    5. 5 EFFECTIVE DATE
    6. 6 RECOGNITION AND MEASUREMENT REQUIREMENTS
    7. 7 PRESENTATION REQUIREMENTS IN SECTION 3 THAT STILL APPLY WHERE SECTION 1A IS APPLIED
    8. 8 COMPLETE SET OF FINANCIAL STATEMENTS
    9. 9 STATEMENT OF FINANCIAL POSITION
    10. 10 INCOME STATEMENT (OR PROFIT AND LOSS ACCOUNT)
    11. 11 INFORMATION TO BE PRESENTED IN THE NOTES TO THE FINANCIAL STATEMENTS
    12. 12 SMALL COMPANIES AND LLPS – STATUTORY EXEMPTIONS
    13. 13 FILING REQUIREMENTS – SMALL COMPANIES AND SMALL LLPS
    14. REFERENCES
  11. Chapter 6: Presentation of financial statements
    1. 1 INTRODUCTION
    2. 2 SUMMARY OF FRS 102'S PRESENTATION REQUIREMENTS
    3. 3 COMPOSITION OF FINANCIAL STATEMENTS
    4. 4 COMPANY LAW FORMATS
    5. 5 STATEMENT OF FINANCIAL POSITION
    6. 6 STATEMENT OF COMPREHENSIVE INCOME
    7. 7 STATEMENT OF CHANGES IN EQUITY
    8. 8 NOTES TO THE FINANCIAL STATEMENTS
    9. 9 GENERAL PRINCIPLES FOR PREPARATION OF FINANCIAL STATEMENTS
    10. 10 RECOGNITION AND MEASUREMENT, PRESENTATION AND DISCLOSURE – COMPANIES ACT ACCOUNTS
    11. 11 SUMMARY OF DIFFERENCES BETWEEN FRS 102 AND IFRS
    12. REFERENCES
  12. Chapter 7: Statement of cash flows
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 7 AND IFRS
    3. 3 THE REQUIREMENTS OF SECTION 7 FOR A STATEMENT OF CASH FLOWS
    4. 4 PRACTICAL ISSUES
    5. 5 SUMMARY OF GAAP DIFFERENCES
    6. REFERENCES
  13. Chapter 8: Consolidated and separate financial statements
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 9 AND IFRS
    3. 3 CONSOLIDATED FINANCIAL STATEMENTS
    4. 4 INDIVIDUAL AND SEPARATE FINANCIAL STATEMENTS
    5. 5 SUMMARY OF GAAP DIFFERENCES
  14. Chapter 9: Accounting policies, estimates and errors
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 10 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 10 FOR ACCOUNTING POLICIES, ESTIMATES AND ERRORS
    4. 4 COMPANY LAW MATTERS
    5. 5 SUMMARY OF GAAP DIFFERENCES
  15. Chapter 10: Financial instruments
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTIONS 11, 12, 22 AND IFRS
    3. 3 SCOPE OF SECTIONS 11, 12 AND 22
    4. 4 RECOGNITION AND MEASUREMENT: ACCOUNTING POLICY CHOICE
    5. 5 FINANCIAL LIABILITIES AND EQUITY
    6. 6 CLASSIFICATION
    7. 7 INITIAL RECOGNITION AND MEASUREMENT
    8. 8 SUBSEQUENT MEASUREMENT
    9. 9 DERECOGNITION
    10. 10 HEDGE ACCOUNTING
    11. 11 PRESENTATION AND DISCLOSURES
    12. 12 SUMMARY OF GAAP DIFFERENCES
  16. Chapter 11: Inventories
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 13 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 13 FOR INVENTORIES
    4. 4 SUMMARY OF GAAP DIFFERENCES
  17. Chapter 12: Investments in associates
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 14 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 14 FOR INVESTMENTS IN ASSOCIATES
    4. 4 PRACTICAL ISSUES
    5. 5 SUMMARY OF GAAP DIFFERENCES
  18. Chapter 13: Investments in joint ventures
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 15 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 15 FOR INVESTMENTS IN JOINT VENTURES
    4. 4 COMPANY LAW MATTERS
    5. 5 SUMMARY OF GAAP DIFFERENCES
  19. Chapter 14: Investment property
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 16 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 16 FOR INVESTMENT PROPERTY
    4. 4 SUMMARY OF GAAP DIFFERENCES
    5. REFERENCES
  20. Chapter 15: Property, plant and equipment
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 17 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 17 FOR PROPERTY, PLANT AND EQUIPMENT
    4. 4 SUMMARY OF GAAP DIFFERENCES
  21. Chapter 16: Intangible assets other than goodwill
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 18 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 18 FOR INTANGIBLE ASSETS OTHER THAN GOODWILL
    4. 4 PRACTICAL ISSUES
    5. 5 SUMMARY OF GAAP DIFFERENCES
  22. Chapter 17: Business combinations and goodwill
    1. 1 INTRODUCTION
    2. 2 KEY DIFFERENCES BETWEEN SECTION 19 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 19 FOR BUSINESS COMBINATIONS AND GOODWILL
    4. 4 DISCLOSURES RELATING TO BUSINESS COMBINATIONS AND GOODWILL
    5. 5 GROUP RECONSTRUCTIONS
    6. 6 SUMMARY OF GAAP DIFFERENCES
  23. Chapter 18: Leases
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 20 AND IFRS (IFRS 16)
    3. 3 REQUIREMENTS OF SECTION 20 FOR LEASES
    4. 4 SUMMARY OF GAAP DIFFERENCES
    5. REFERENCES
  24. Chapter 19: Provisions and contingencies
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 21 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 21 FOR PROVISIONS AND CONTINGENCIES
    4. 4 OTHER EXAMPLES OF PROVISIONS
    5. 5 SUMMARY OF GAAP DIFFERENCES
    6. REFERENCES
  25. Chapter 20: Revenue
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 23 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 23 FOR REVENUE
    4. 4 PRACTICAL ISSUES
    5. 5 SUMMARY OF GAAP DIFFERENCES
  26. Chapter 21: Government grants
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 24 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 24 FOR GOVERNMENT GRANTS
    4. 4 SUMMARY OF GAAP DIFFERENCES
    5. REFERENCES
  27. Chapter 22: Borrowing costs
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 25 AND IFRS
    3. 3 THE REQUIREMENTS OF SECTION 25 FOR BORROWING COSTS
    4. 4 SUMMARY OF GAAP DIFFERENCES
    5. REFERENCES
  28. Chapter 23: Share-based payment
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 26 AND IFRS
    3. 3 SCOPE OF SECTION 26
    4. 4 GENERAL RECOGNITION PRINCIPLES
    5. 5 EQUITY-SETTLED TRANSACTIONS – OVERVIEW
    6. 6 EQUITY-SETTLED TRANSACTIONS – COST OF AWARDS
    7. 7 EQUITY-SETTLED TRANSACTIONS – ALLOCATION OF EXPENSE
    8. 8 EQUITY-SETTLED TRANSACTIONS – MODIFICATION, CANCELLATION AND SETTLEMENT
    9. 9 EQUITY-SETTLED TRANSACTIONS – VALUATION
    10. 10 CASH-SETTLED TRANSACTIONS
    11. 11 TRANSACTIONS WITH EQUITY AND CASH ALTERNATIVES
    12. 12 REPLACEMENT SHARE-BASED PAYMENT AWARDS ISSUED IN A BUSINESS COMBINATION
    13. 13 GROUP SHARE SCHEMES
    14. 14 DISCLOSURES
    15. 15 TAXES RELATED TO SHARE-BASED PAYMENT TRANSACTIONS
    16. 16 OTHER PRACTICAL ISSUES
    17. 17 FIRST-TIME ADOPTION AND TRANSITIONAL PROVISIONS
    18. 18 SUMMARY OF GAAP DIFFERENCES
  29. Chapter 24: Impairment of assets
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 27 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 27 FOR IMPAIRMENT
    4. 4 IMPAIRMENT OF ASSETS OTHER THAN INVENTORIES
    5. 5 GOODWILL AND ITS ALLOCATION TO CGUs
    6. 6 RECOGNISING AND MEASURING IMPAIRMENT LOSSES
    7. 7 REVERSAL OF AN IMPAIRMENT LOSS
    8. 8 DISCLOSURES
    9. 9 SUMMARY OF GAAP DIFFERENCES
  30. Chapter 25: Employee benefits
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTIONS 28 AND IFRS
    3. 3 THE REQUIREMENTS OF SECTION 28 FOR EMPLOYEE BENEFITS
    4. 4 COMPANIES ACT REQUIREMENTS
    5. 5 SUMMARY OF GAAP DIFFERENCES
    6. REFERENCES
  31. Chapter 26: Income tax
    1. 1 INTRODUCTION
    2. 2 KEY DIFFERENCES TO IFRS
    3. 3 SCOPE OF SECTION 29
    4. 4. VALUE ADDED TAX (‘VAT’) AND OTHER SIMILAR SALES TAXES
    5. 5 CURRENT TAX
    6. 6 DEFERRED TAX – RECOGNITION
    7. 7 DEFERRED TAX – MEASUREMENT
    8. 8 ALLOCATION OF TAX CHARGE OR CREDIT
    9. 9 CONSOLIDATED TAX RETURNS AND OFFSET OF TAXABLE PROFITS AND LOSSES WITHIN GROUPS
    10. 10 PRESENTATION
    11. 11 DISCLOSURE
    12. 12 SUMMARY OF GAAP DIFFERENCES
    13. REFERENCES
  32. Chapter 27: Foreign currency translation
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 30 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 30 FOR FOREIGN CURRENCY TRANSLATION
    4. 4 UK COMPANY LAW MATTERS
    5. 5 SUMMARY OF GAAP DIFFERENCES
  33. Chapter 28: Hyperinflation
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 31 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 31 FOR HYPERINFLATION
  34. Chapter 29: Events after the end of the reporting period
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 32 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 32 FOR EVENTS AFTER THE END OF THE REPORTING PERIOD
    4. 4. PRACTICAL ISSUES
  35. Chapter 30: Related party disclosures
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN SECTION 33 AND IFRS
    3. 3 REQUIREMENTS OF SECTION 33 FOR RELATED PARTY DISCLOSURES
    4. 4. SUMMARY OF GAAP DIFFERENCES
    5. REFERENCES
  36. Chapter 31: Specialised activities
    1. 1 INTRODUCTION
    2. 2 AGRICULTURE
    3. 3 EXTRACTIVE ACTIVITIES
    4. 4 SERVICE CONCESSION ARRANGEMENTS
    5. 5 HERITAGE ASSETS
    6. 6 PUBLIC BENEFIT ENTITIES
  37. Chapter 32: Transition to FRS 102
    1. 1 INTRODUCTION
    2. 2 KEY DIFFERENCES BETWEEN SECTION 35 AND IFRS
    3. 3 DEFINITIONS, SCOPE, AND PREPARATION OF THE OPENING FRS 102 STATEMENT OF FINANCIAL POSITION
    4. 4 MANDATORY EXCEPTIONS TO RETROSPECTIVE APPLICATION
    5. 5 OPTIONAL EXEMPTIONS TO RETROSPECTIVE APPLICATION
    6. 6 PRESENTATION AND DISCLOSURE
    7. 7 FRS 105
    8. REFERENCES
  38. Chapter 33: FRS 103 – Insurance contracts
    1. 1 INTRODUCTION
    2. 2 COMPARISON BETWEEN FRS 103 AND IFRS 4
    3. 3 THE OBJECTIVES, SCOPE OF AND TRANSITION TO FRS 103
    4. 4 THE DEFINITION OF AN INSURANCE CONTRACT
    5. 5 EMBEDDED DERIVATIVES
    6. 6 UNBUNDLING OF DEPOSIT COMPONENTS
    7. 7 DISCRETIONARY PARTICIPATION FEATURES
    8. 8 PRESENTATION, RECOGNITION AND MEASUREMENT OF INSURANCE CONTRACTS
    9. 9 CHANGES IN ACCOUNTING POLICIES
    10. 10 INSURANCE CONTRACTS ACQUIRED IN BUSINESS COMBINATIONS AND PORTFOLIO TRANSFERS
    11. 11 DISCLOSURE
  39. Chapter 34: FRS 104 – Interim financial reporting
    1. 1 INTRODUCTION
    2. 2 OBJECTIVE AND SCOPE OF FRS 104
    3. 3 FORM AND CONTENT OF AN INTERIM FINANCIAL REPORT UNDER FRS 104
    4. 4 DISCLOSURES IN CONDENSED FINANCIAL STATEMENTS
    5. 5 ENTITIES REPORTING UNDER FRS 101
    6. 6. PERIODS FOR WHICH INTERIM FINANCIAL STATEMENTS ARE REQUIRED TO BE PRESENTED
    7. 7 MATERIALITY
    8. 8 RECOGNITION AND MEASUREMENT
    9. 9 EXAMPLES OF THE RECOGNITION AND MEASUREMENT PRINCIPLES
    10. 10 USE OF ESTIMATES
    11. 11 FIRST-TIME PRESENTATION OF INTERIM REPORTS COMPLYING WITH FRS 104
  40. Index of standards
  41. Advertisement Page
  42. End User License Agreement

Product information

  • Title: UK GAAP 2019
  • Author(s): Ernst & Young LLP
  • Release date: April 2019
  • Publisher(s): Wiley
  • ISBN: 9781119558262