Q&A With FRS 102 Expert, Val Steward
Monday, October 9, 2017
Next month the CPAA will host a morning briefing on FRS 102 with expert speaker Valerie Steward. Here we pose a number of questions to Val to get more insight on the topic and find out what practitioners can expect:
CPAA: Why should delegates look to attend?
VS: "Practitioners are still struggling to deal with some of the changes in reporting and this course will ensure that you have the appropriate knowledge. As a relatively new reporting standard, FRS 102 has had some teething troubles, including areas of complexity that many consider open to interpretation. This session will provide a good grounding in the requirements of the FRS 102 and a chance to discuss your experiences with professionals and peers."
CPAA: Can you still file abbreviated accounts?
VS: "No these are no longer available. Companies are now able to explore other relatively straightforward options for filing accounts. For instance, companies can file so-called ‘filleted’ accounts that don’t have to include profit and loss accounts, and/or the directors report. Accountants must file an abridged balance sheet or abridged profit and loss."
CPAA: Can you still take advantage of the exemption available under s444 of the Companies Act 2006? Do you have to file the profit and loss account with Companies House?
VS: "They can and small and micro entities do not need to file their profit and loss account. These firms can file ‘filleted’ accounts, so if they don’t file profit and loss, the balance sheet must state that the accounts meet the requirements of the small companies regime."
CPAA: Do directors need to approve 'filleted' accounts before they are filed?
VS: "The ‘filleted’ accounts are not actually a different set of accounts so the directors approve the full accounts, and the 'filleted' accounts are then filed. Many small companies will find themselves filing MORE information than was the case previously for abbreviated accounts, so it’s prudent for directors to review what is included, as it will become a matter of public record."
CPAA: What consent is needed before abridged accounts can be prepared?
VS: "All shareholders need to agree and this is confirmed on the balance sheet statement. Now consent must be obtained each year about the preceding financial year, seemingly to avoid continuing authority."
To find out more about the FRS 102 briefing on 2nd November and register your interest in attending visit the event web page here.