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[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off”][et_pb_row admin_label=”Row”][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [button link=”http://www.frs102.com/members/premium-toolkit/” type=”big” color=”red”] Return to Main Index[/button] [/et_pb_text][/et_pb_column][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [button link=”https://uk.frs102.com/members/premium-toolkit/section-4/” type=”big” color=”red”] Return to Section 4 Home[/button] [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Main Body Text” background_layout=”light” text_orientation=”justified” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]Alternative statement of financial position format
Extract from FRS102: Section 4.2-4.2D
4.2A An entity choosing to apply paragraph 1A(1) of Schedule 1 to the Regulations and adapt one of the balance sheet formats shall, as a minimum, include in its statement of financial position line items that present the following, distinguishing between those items that are current and those that are non-current:
(a) property, plant and equipment;
(b) investment property carried at fair value through profit or loss;
(c) intangible assets;
(d) financial assets (excluding amounts shown under (e), (f), (j) and (k));
(e) investments in associates;
(f) investments in jointly controlled entities;
(g) biological assets carried at cost less accumulated depreciation and impairment;
(h) biological assets carried at fair value through profit or loss;
(i) inventories;
(j) trade and other receivables;
(k) cash and cash equivalents;
(l) trade and other payables;
(m) provisions;
(n) financial liabilities (excluding amounts shown under (l) and (m));
(o) liabilities and assets for current tax;
(p) deferred tax liabilities and deferred tax assets (classified as non-current);
(q) non-controlling interest, presented within equity separately from the equity attributable to the owners of the parent; and
(r) equity attributable to the owners of the parent.
4.2B An entity choosing to apply paragraph 1A(1) of Schedule 1 to the Regulations shall also disclose, either in the statement of financial position or in the notes, the following sub- classifications of the line items presented:
(a) property, plant and equipment in classifications appropriate to the entity;
(b) intangible assets and goodwill in classifications appropriate to the entity;
(c) investments, showing separately shares and loans;
(d) trade and other receivables showing separately amounts due from related parties, amounts due from other parties, prepayments and receivables arising from accrued income not yet billed;
(e) inventories, showing separately amounts of inventories:
(i) held for sale in the ordinary course of business;
(ii) in the process of production for such sale; and
(iii) in the form of materials or supplies to be consumed in the production process or in the rendering of services.
(f) trade and other payables, showing separately amounts payable to trade suppliers, payable to related parties, deferred income and accruals; and
(g) classes of equity, such as share capital, share premium, retained earnings, revaluation reserve, fair value reserve and other reserves.
4.2C The descriptions used in paragraphs 4.2A and 4.2B, and the ordering of items or aggregation of similar items, may be amended according to the nature of the entity and its transactions, to provide information that is relevant to an understanding of the entity’s financial position, providing the information given is at least equivalent to that required by the balance sheet format had it not been adapted.
4.2D In order to comply with the requirement to distinguish between those items that are current and those that are non-current an entity shall present current and non-current assets, and current and non-current liabilities, as separate classifications in its statement of financial position.
OmniPro comment
Section 4.2A-4.2D relates to a different choice as to what format the balance sheet can be presented in. This is not applicable for companies registered in the Republic of Ireland at this time as the EU directive 2013/34 has not been enacted. UK companies can currently use this layout if the UK entity has early adopted the September 2015 amendments to FRS 102. This is not specific to small companies.
The above wording would just be replaced with the current wording in the balance sheet formats above. It produces a format similar to IFRS financial statements. It requires items to be split between those that are current and non-current.
See below a high level example of the layout of the statement of financial position. The categories above would be inserted as and when required.
Example 4: Alternative Statement of Financial Position S42.A – S42.D Alternative IFRS Version
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Notes | 2015 CU | 2014 CU | |
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 13 | XXX | XXX |
| Investment properties | 14 | XXX | XXX |
| Goodwill and intangible assets | 15 | XXX | XXX |
| Investments in associates and joint ventures | 16 | XXX | XXX |
| Financial assets | 16 | XXX | XXX |
| Biological assets at cost | 14A | XXX | XXX |
| Biological assets at fair value | 14B | XXX | XXX |
| Receivables | 18 | XXX | XXX |
| Deferred tax assets | 23 | XXX | XXX |
| Total non-current assets | XXX | XXX | |
| Current assets | |||
| Inventory | 17 | XXX | XXX |
| Trade and other receivables | 18 | XXX | XXX |
| Derivative financial instruments | 22 | XXX | XXX |
| Cash and cash equivalents | 20 | XXX | XXX |
| Total current assets | XXX | XXX | |
| TOTAL ASSETS | XXX | XXX |
| EQUITY | |||
| Called up share capital | 12 | XXX | XXX |
| Share premium | 12A | XXX | XXX |
| Cash flow hedge reserve | 12A | XXX | XXX |
| Retained earnings and other reserves | 12A | XXX | XXX |
| Total attributable to the equity holders of the parent | XXX | XXX | |
| Non-controlling interest | XXX | XXX | |
| TOTAL EQUITY | XXX | XXX | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Interest-bearing borrowings (optional) | 13 | XXXX | XXXX |
| Deferred tax liabilities | 14 | XXX | XXX |
| Contingent acquisition consideration | 15 | – | – |
| Other payables | 16 | – | – |
| Employee benefit obligations | 17 | XXX | XXX |
| Derivative financial instruments | 18 | XXXX | XXXX |
| Total non-current liabilities | XXX | XXX |
| Current liabilities | |||
| Interest-bearing borrowings (optional) | 19 | XXX | XXX |
| Trade and other payables | 20 | XXX | XXX |
| Current tax payable | XXX | XXX | |
| Contingent acquisition consideration | 21 | XXX | XXX |
| Employee benefit obligations | XXX | XXX | |
| Provisions | 21 | XXX | XXX |
| Derivative financial instruments | 22 | XXXX | XXXX |
| Total current liabilities | XXX | XXX | |
| TOTAL LIABILITIES | XXX | XXX | |
| TOTAL EQUITY AND LIABILITIES | XXX | XXX | |
Transition exemptions
There are no transition exemptions. However the layout is similar to old GAAP so there should be no issues transitioning.
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