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Contents

3.1 Scope.

3.2 Small company’s exemptions for certain sections in Section 3.

3.2.1 Extract from FRS 102: Section 3.1A.

3.2.2 OmniPro comment

3.3 True and fair view.

3.3.1 Extract from FRS 102: Section 3.2.

3.3.2 OmniPro comment

3.4 Compliance with this FRS.

3.4.1 Extract from FRS 102: Section 3.3-3.3A.

3.4.2 OmniPro comment

3.4.2.1 Overview.

3.4.2.2 Example of FRS 102 Compliance Statement and Public Benefit entity Statement

3.5 Compliance with this FRS – True and fair override.

3.5.1 Extract from FRS 102: Section 3.4-3.6.

3.5.2 OmniPro comment

3.5.2.1 True and Fair override defined.

3.5.2.2 Expected instances where the true and fair override would be revoked.

3.5.2.3 The Disclosures required where a true and fair override is invoked.

3.5.2.3.1 The disclosure required in the following periods financial statements.

3.6 Going concern.

3.6.1 Extract from FRS 102: Section 3.8-3.9.

3.6.2 OmniPro comment

3.6.2.1 Overview and minimum look forward for going concern.

2.6.2.2 Material uncertainties relating to going concern.

3.6.2.3 Disclosure where financial statements prepared on a basis other than the going concern.

3.7 Frequency of reporting.

3.7.1 Extract from FRS 102: Section 3.10.

3.7.2 OmniPro comment

3.8 Consistency of presentation.

3.8.1 Extract from FRS 102: Section 3.11-3.13.

3.8.2 OmniPro comment

3.8.2.1 Overview.

3.8.2.2 Disclosure period where there is a change.

3.9 Comparative information.

3.9.1 Extract from FRS 102: Section 3.14.

3.9.2 OmniPro comment

3.10 Materiality and aggregation.

3.10.1 Extract from FRS 102: Section 3.15-3.16A.

3.10.2 OmniPro comment

3.10.2.1 Definition of Material.

3.11 Complete set of financial statements.

3.11.1 Extract from FRS 102: Section 3.17-3.22.

3.11.2 OmniPro comment

3.12 Identification of the financial statements.

3.12.1 Extract from FRS 102: Section 3.23-3.24.

3.12.2 OmniPro comment

3.12.2.1. Requirements throughout the Financial Statements.

3.12.2.2 Legal form and business activities requirement.

3.13 Presentation of information not required by this FRS.

3.13.1 Extract from FRS 102: Section 3.25.

3.13.2 OmniPro comment

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3.10 Materiality and aggregation
3.10.1 Extract from FRS 102: Section 3.15-3.16A

3.15  An entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial.

3.16  Financial statements result from processing large numbers of transactions or other events that are aggregated into classes according to their nature or function. The final stage in the process of aggregation and classification is the presentation of condensed and classified data, which form line items in the financial statements. If a line item is not individually material, it is aggregated with other items either in those statements or in the notes. An item that may not warrant separate presentation in those statements may warrant separate presentation in the notes.

3.16A  An entity need not provide a specific disclosure required by this FRS if the information is not material.

3.10.2 OmniPro comment
3.10.2.1 Definition of Material

Appendix I of FRS 102 defines items as material where ‘omissions or misstatements of items that are material if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements.

Materiality depends on the size and nature of the omission or misstatement judged in surrounding circumstances. The size and nature of the item, or a combination of both, could be the determining factor.

Materiality should be determined based on the perspective of the reader of the financial statements and it should consider both qualitative and quantitative measures.

Specific disclosures are not required where they are deemed immaterial. – as per Section 3.16A of FRS 102

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Examples

Example 1: Statement of compliance with FRS 102.

Example 2: Statement of compliance with FRS 102 on adoption of FRS 102.

Example 3: Going concern disclosure.

Example 4: Basis of preparation – material uncertainty over going concern.

Example 5: Other than going concern disclosure.

Example 6: Frequency of reporting disclosure.

Example 7: sample of a disclosure note to be included in the notes detailing a reclassification adjustment.

Example 8: Basis of Preparation Policy.

Example 9: Basis of Preparation Policy.

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