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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”]Information to be presented in the statement of financial position
Extract from FRS102: Section 4.2-4.4A and Section 4.7
4.2 An entity shall present a statement of financial position in accordance with one of the following requirements for a balance sheet:
(a) Part 1 General Rules and Formats of Schedule 1 to the Regulations.
(b) Part 1 General Rules and Formats of Schedule 2 to the Regulations.
(c) Part 1 General Rules and Formats of Schedule 3 to the Regulations.
(d) Part 1 General Rules and Formats of Schedule 1 to the LLP Regulations.
The consolidated statement of financial position of a group shall be presented in accordance with the requirements for a consolidated balance sheet in Schedule 6 to the Regulations or Schedule 3 to the LLP Regulations.
4.3 An entity shall present additional line items, headings and subtotals in the statement of financial position when such presentation is relevant to an understanding of the entity’s financial position.
Debtors due after more than one year
4.4A Unless an entity chooses to apply paragraph 1A(1) of Schedule 1 to the Regulations, in instances where the amount of debtors due after more than one year is so material in the context of the total net current assets that in the absence of disclosure of the debtors due after more than one year on the face of the statement of financial position readers may misinterpret the financial statements, the amount should be disclosed on the face of the statement of financial position within current assets. In most cases it will be satisfactory to disclose the amount due after more than one year in the notes to the financial statements.
Creditors: amounts falling due within one year
4.7 Unless an entity chooses to apply paragraph 1A(1) of Schedule 1 to the Regulations, an entity shall classify a creditor as due within one year when the entity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least 12 months after the reporting date. For example, this would be the case if the earliest date on which the lender, exercising all available options and rights, could require repayment or (as the case may be) payment was within 12 months after the reporting date.
OmniPro comment
The above references are to the UK Companies Act. The relevant references to the Irish Companies Acts with regard to the Balance Sheet layout are:
Format 1 Balance sheet format – Schedule 3 of Companies Act 2014
Format 2 Balance sheet format – Schedule 3 of Companies Act 2014
It is evident from the above that the statement of financial position can be called a balance sheet or statement of financial position. The balance sheet should follow one of the layouts in the Companies Act as detailed above or can be laid out in the format in Section 4.2A-4.2D. 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 they would like to. This is not specific to small companies. Section 4.2A-4.2D has been discussed in the section titled ‘Alternative balance sheet format’ below. It is an adoption of the IFRS layout.
See below the application of the above guidance.
Example 1: Extract from the Consolidated Balance Sheet – S.4 FRS 102
At 31 December 2015
| 2015 | 2014 | |
| CU | CU | |
| Fixed assets | ||
| Tangible assets | XXXX | XXXX |
| Negative goodwill | (XXXX) | – |
| Intangible assets | XXXX | XXXX |
| Financial assets | XXXX | XXXX |
| XXXX | XXXXX | |
| Current assets | ||
| Stocks | XXXXX | XXXXX |
| Debtors | XXXXX | XXXXX |
| Cash at bank and in hand | XXXXX | XXXXX |
| XXXXX | XXXXX | |
| Creditors – amounts falling due within one year | (XXXXX) | (XXXXX) |
| Net current assets | XXXXX | XXXXX |
| Total assets less current liabilities | XXXXX | XXXXX |
| Creditors – amounts falling due after more than one year | (XXXX) | (XXXX) |
| Provisions for liabilities | ||
| Capital grants | (XXXX) | (XXXX) |
| Deferred taxation | (XXXX) | (XXXX) |
| Net assets excluding pension liability | XXXXX | XXXXX |
| Defined benefit pension liability | (XXXXX) | (XXXXX) |
| Net assets including pension liability | XXXXXX | XXXXXX |
| Capital and reserves | ||
| Called up share capital presented as equity | XXXXX | XXXXX |
| Share premium account | XXXXX | XXXXX |
| Capital redemption reserve | XXXXX | XXXXX |
| Revaluation reserve | XXXXX | XXXXX |
| Non-distributable reserve | XXXXX | XXXXX |
| Profit and loss account | XXXXX | XXXXX |
| Equity attributable to owners of the parent company | XXXXX | XXXXX |
| Non-controlling interest | XXXXX | XXXXX |
| Total equity | XXXXX | XXXXX |
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