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Don’t duck the standards

30 August 2016 / Kevin Read
Issue: 4565 / Categories: Comment & Analysis , Business
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Adopting FRS 102 may prove to be taxing.
 

KEY POINTS

  • Financial statements are being prepared under FRS 102 so more thought must be given to the resulting tax issues.
  • FRS 102 applies to accounting periods beginning on or after 1 January 2016 for small entities.
  • The change of accounting basis will mean a ‘prior period restatement’ in accounts.
  • Some leases that were treated as operating leases under old UK GAAP will now be finance leases.
  • The changes to lease accounting required by FRS 102 are likely to have have tax consequences. 

Many readers will have spent significant time over the past year or so acquainting themselves with all the accounting changes in Financial Reporting Standard 102 which has been introduced as a result of the EU Accounting Directive. As an aside I wonder...

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