³ÉÈËÓ°Òô

Transition from FRS 105 to FRS 102

Produced by Tolley in association with
Corporation Tax
Guidance

Transition from FRS 105 to FRS 102

Produced by Tolley in association with
Corporation Tax
Guidance
imgtext

Introduction

The fundamental principle when transitioning from FRS 105 to FRS 102 is that any changes in accounting policy must be applied retrospectively.

There are, however, transitional rules to make the process more efficient, where some adjustments will not be required.

Transitional adjustments can affect taxable profits and consequently the corporation tax computation in the year in which FRS 102 is adopted (and subsequently). This is covered in detail in the Transitional issues affecting the corporation tax computation and return guidance note.

Accounting for current and deferred tax

FRS 105 does not permit the booking of deferred tax. On transition to FRS 102, deferred tax assets and liabilities will need to be booked in accordance with the principles in FRS 102, s 29.

Transitional exemptions

Business combinations

An entity is not required to restate business combinations that occurred prior to the start of the comparative year. However, if it chooses to restate, the entity must do so in respect of all subsequent business combinations under FRS 102 from the earliest

Continue reading
To read the full Guidance note, register for a free trial of Tolley+â„¢
Malcolm Greenbaum
Malcolm Greenbaum

Director and Principal Trainer at Greenbaum Training and Consultancy Limited


Malcolm is a UK Chartered Accountant and Chartered Tax Advisor winning the John Wood Medal in the November 1995 CIOT sitting for the best paper on business taxation. He was previously Director of Finance and Taxation Programmes at BPP Professional Education and has delivered IFRS, US GAAP, UK Tax and VAT training (at all levels from an introduction to the complexities of IAS 39) to a multitude of organisations world-wide since 1992. Malcolm has particular experience in delivering bespoke training programmes to multi-nationals in the financial services, transport and energy sectors as well as delivering UK tax and VAT update programmes to accounting and law firms. He is passionate about training and his enthusiasm ensures that the participants enjoy the learning experience whilst gaining knowledge through their engagement in the sessions and through encouraging them to ask questions and discuss practical issues they may have. Malcolm also provides consultancy services to companies and accounting firms, including provision of VAT advice, reviewing accounting policy manuals and advising on accounting treatments of various transactions. In his spare time, Malcolm enjoys flying having gained a Private Pilot's Licence in 2014.

Powered by

Popular Articles

Bad debts

Bad debtsBad debts usually arise where goods or services have been provided to a customer, for which payment has not been received within a reasonable or specified time period, or for which the customer is unable to pay. It is necessary to determine the quantum of relief that can be claimed for bad

14 Jul 2020 15:34 | Produced by Tolley Read more Read more

Real estate investment trusts (REITs)

Real estate investment trusts (REITs)Introduction to REITsA real estate investment trust (REIT) is in fact not a trust at all, it is a company which qualifies for special tax treatment under CTA 2010, Part 12. REITs are similar in many ways to collective fund vehicles (such as unit trusts) in that

14 Jul 2020 13:04 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax Read more Read more

Winding up a trust ― legal, administrative and compliance issues

Winding up a trust ― legal, administrative and compliance issuesOverviewWhen winding up a trust, there are legal formalities and compliance issues that need to be dealt with, as well as IHT and CGT consequences that flow from the termination. This guidance note considers when and how a trust comes

14 Jul 2020 14:01 | Produced by Tolley Read more Read more