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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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3.12 Identification of the Financial Statements
3.12.1 Extract from FRS 102: Section 3.23-3.24

3.23 An entity shall clearly identify each of the financial statements and the notes and distinguish them from other information in the same document. In addition, an entity shall display the following information prominently, and repeat it when necessary for an understanding of the information presented:

(a)   the name of the reporting entity and any change in its name since the end of the preceding reporting period;

(b)   whether the financial statements cover the individual entity or a group of entities;

(c)    the date of the end of the reporting period and the period covered by the financial statements;

(d)   the presentation currency, as defined in Section 30 Foreign Currency Translation; and

(e)   the level of rounding, if any, used in presenting amounts in the financial statements.

3.24 An entity shall disclose the following in the notes:

(a)  the legal form of the entity, its country of incorporation and the address of its registered office (or principal place of business, if different from the registered office); and

(b)  a description of the nature of the entity’s operations and its principal activities, unless this is disclosed in the business review (or similar statement) accompanying the financial statements.

3.12.2 OmniPro comment
3.12.2.1. Requirements throughout the Financial Statements.

Section 3.23 of FRS 102 requires the following to be included in a set of Financial Statements.

In order to meet the requirements of Section 3.23 of FRS 102 the name of the entity and the period end date should be included on the top of every page of the financial statements and also on the cover page of the financial statements. Where a change of name has occurred, this should also be included on the top of every page e.g. ‘XXXX Limited (Formerly XXX Limited)’ and on the cover page of the financial statements.

The basis of preparation note should disclose the currency in which the financial statements are presented as required by Section 3.23 (d) of FRS 102 See example below:


Example 8: Basis of Preparation Policy

‘The financial statements are prepared in Euro which is the functional currency of the company. OR The company has chosen to present the financial statement in a currency that differs from its functional currency so that it can be easily consolidated into the parent company’s financial statements. The functional currency of the company is XXX ‘


Where the current and comparative year is not of equal length a disclosure should be included similar to what was illustrated at 3.7.2 It should also be detailed on the face of the profit and loss account.

3.12.2.2 Legal form and business activities requirement.

Section 3.26 of FRS 102 requires the entity to disclose in its notes:

Note in addition to the above if an entity is a Company the company registration number must be disclosed under company law.

See below an illustration of the requirements of Section 3.24 of FRS 102 above.


Example 9: Basis of Preparation Policy

‘XXX Limited is primarily engaged in the provision of construction services to both the private and commercial sectors. From their operations base and depot in XXXXXX, Dunblock, Any County they also sell pre-cast concrete products to private individuals and the construction industry. The company is supplied with the pre-cast concrete products by a wholly owned subsidiary company, which operates independently from a separate location.

The company is a limited liability company incorporated in XXX. With the registered office of XXX. (The Company registration number is 12345)


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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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