Transition from IFRS to FRS 102

Produced by Tolley in association with

Corporation Tax

Guidance

Introduction

Transitioning from IFRS to FRS 102 will be rare, although two examples of this scenario are provided below:

•
it is possible that a company currently listed on a UK / EU regulated stock exchange or the UK's Alternative Investment Market (AIM) might delist and may not need to produce IFRS financial statements in future
•
a subsidiary currently producing IFRS financial statements as directed by its parent may be sold by the parent company to shareholders or another group that is not using IFRS whereby it may need to transition to FRS 102

Rate of tax

The rate of tax used for any deferred tax calculations on transition to FRS 102 is the rate expected to apply when the timing difference reverses, based on the rates enacted or substantively enacted at the end of the relevant year. See the FRS 102 ― current and deferred tax guidance note for a definition of when a rate is substantively enacted.

Comparison of deferred tax accounting

IFRS (IAS 12) calculates deferred taxation

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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.

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