. explains the Future of UK GAAP
UK companies which are not listed currently have a choice between UK GAAP and IFRS. Some of them have chosen IFRS because their parent companies are listed and it is easier to adopt the same basis of accounting across all companies in the group. Listed companies in the UK and other EU countries are obliged to prepare their consolidated accounts using IFRS rather than their national GAAP.
The UK's Accounting Standards Board (ASB) has issued its Exposure Draft for a proposed new standard, The Financial Reporting Standard applicable in the UK and Republic of Ireland. outlining its plans for the future of UK GAAP. It is based on the International Accounting Standards Board's 'IFRS for Small and Medium-Sized Entities (IFRS for SMEs)'.
After a period of stability, the IASB has introduced a number of changes to IFRS. They affect business combinations, the structure of the primary financial statements and segmental reporting amongst other matters. These changes are discussed on the course, along with proposed future changes to the accounting for leases, financial instruments, revenue
and pension schemes.
The course answers the following questions:
- If I have a choice between UK GAAP and IFRS, what are the advantages and disadvantages of IFRS?
- Which companies must use IFRS?
- What changes have recently been made to IFRS?
- What does a set of IFRS financial statements look like?
- How does each international standard differ from its UK counterpart?
- What are the simplifications available for first-time adopters of IFRS?
- I have heard that IFRS considerably lengthens a company’s financial statements. In which ways do IFRS disclosure requirements differ from UK GAAP?
- What are the likely changes to IFRS in the near future?
- If in the future my organisation has to produce its financial statements in accordance with the proposed new Standard for UK GAAP, how will they differ from those prepared at present?
- What are the principal differences between IFRS and US GAAP?