HMRC publishes an update to its papers on the tax implications of adopting FRS101 or FRS102
The update to HMRC’s guidance follows the recent release of updated versions of FRS101 and FRS102 by the Financial Reporting Council in September 2015.
The purpose of the papers is to assist companies with the tax implications of applying FRS101 (IFRS Reduced Disclosure Framework) or FRS102 (New UK GAAP) for the first time.
The papers include an overview of the key accounting changes and the key tax considerations that arise for companies that will be transitioning from the Old UK GAAP to the new standards.
The FRS102 paper is relevant for medium and large size companies who will adopt FRS102 for accounting periods commencing on or after 1 January 2015 and also for small companies who will adopt FRS102 Section1A for accounting periods commencing on or after 1 January 2016.
The FRS101 paper is relevant for UK subsidiaries of groups preparing accounts under EU-adopted IFRS who choose to adopt FRS101.