[et_pb_section admin_label=”Header – All Pages” global_module=”1221″ transparent_background=”off” background_color=”#1e73be” 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″ custom_padding=”||0px|”][et_pb_row global_parent=”1221″ admin_label=”row”][et_pb_column type=”4_4″][et_pb_post_title global_parent=”1221″ admin_label=”Post Title” title=”on” meta=”off” author=”on” date=”on” categories=”on” comments=”on” featured_image=”off” featured_placement=”below” parallax_effect=”on” parallax_method=”on” text_orientation=”left” text_color=”light” text_background=”off” text_bg_color=”rgba(255,255,255,0.9)” module_bg_color=”rgba(255,255,255,0)” title_all_caps=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” title_font=”|on|||” title_font_size=”35″ custom_padding=”10px|||”] [/et_pb_post_title][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” global_module=”1228″ fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” custom_padding=”0px||0px|” padding_mobile=”on” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″][et_pb_row global_parent=”1228″ admin_label=”Row” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” gutter_width=”3″ custom_padding=”0px||0px|” padding_mobile=”off” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” column_padding_mobile=”on”][et_pb_column type=”4_4″][et_pb_text global_parent=”1228″ admin_label=”Text” background_layout=”light” text_orientation=”left” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”]
[/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-6/” type=”big” color=”red”] Return to Section 6 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”]Example 1: Consolidated Statement of Change in Equity
For the Year Ended 31 December 2015
|
|
Equity Share Capital |
Revaluation Reserve |
Capital redemp-tion Reserve |
Retained Earnings |
Share premium Reserve |
Total attributable to the Parent |
Non-controlling interest |
Total Equity
|
|
|
CU |
CU |
CU |
CU |
CU |
CU |
CU |
CU |
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2014 |
100,000 |
225,000 |
115,375 |
115,375 |
1,000 |
331,375 |
100,000 |
441,375 |
|
|
|
|
|
|
|
|
|
|
|
Changes in ownership interests in subsidiaries which do not result in a loss of control |
|
|
|
|
|
– |
(100,000) |
– |
|
Profit for the year |
|
10,000 |
|
83,818 |
|
91,818 |
2,000 |
93,818 |
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2014 |
100,000 |
225,000 |
0 |
209,193 |
1,000 |
|
2,000 |
535,193 |
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2015 |
100,000 |
225,000 |
0 |
209,193 |
1,000 |
0 |
0 |
535,193 |
|
|
|
|
|
|
|
|
|
|
|
Equity Shares issued net of issue costs |
20,000 |
|
|
|
5,000 |
|
|
25,000 |
|
|
|
|
|
|
|
|
|
|
|
Profit for the year |
|
|
|
1,005,772 |
|
1,005,772 |
10,000 |
1,005,772 |
|
|
|
|
|
|
|
|
|
|
|
Equity dividends paid (see note XX) |
|
|
|
(9,900) |
|
(9,900) |
(100) |
(10,000) |
|
|
|
|
|
|
|
|
|
|
|
Capitalisation of shares |
1,000 |
|
|
(1,000) |
– |
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
Changes in ownership interests in subsidiaries which do not result in a loss of control |
|
|
|
|
|
– |
(100,000) |
– |
|
|
|
|
|
|
|
|
|
|
|
Buyback of own shares |
(1,000) |
|
1,000 |
(2,000) |
|
(2,000) |
|
(1,000) |
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive Income |
|
|
(15,000) |
|
(15,000) |
(15,000) |
|
(15,000) |
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2015 |
109,000 |
225,000 |
(14,000) |
1,214,965 |
(15,000) |
XXXX |
10,100 |
1,554,965 |
The below could be included in the notes to the financial statements
i) Revaluation reserve
The revaluation reserve arises as a result of the company’s policy of revaluing property, plant and equipment on a regular basis. During the year the depreciation net of the release of deferred tax on the uplift on the valuation was transferred from profit and loss reserves to the revaluation reserve. On inception of the revaluation reserve the reserve was recorded net of deferred tax.
ii) Cash flow hedge reserve
The cash flow hedge reserve is used to record transactions arising from the company’s cash flow hedging arrangements. These are expected to crystalise within the next 12 months as detailed in note X.
iii) Non-distributable reserve
This reserve arose on transition to FRS 102, where the entity applied the exemption in Section 35 of FRS 102 to deem a previous revaluation on property as deemed cost. The amount included in the reserve is net of deferred tax at the rate the asset is expected to be realised. During the year the depreciation net of the release of deferred tax on the uplift on the valuation was transferred from profit and loss reserves to the non-distributale reserve. On inception of the revaluation reserve the reserve was recorded net of deferred tax.
iv) Capital redemption reserve
The capital redemption reserve reflects the nominal value of shares bought back by the company. There was no activity on this reserve in the current year
v) Share premium
The share premium reflects the premium received on shares issued by the company. The increase arises due to the allotment of 10,000 shares above par during the year as detailed in note X.
vi) Capital development fund
The capital development fund is operated to accumulate funds to meet the cost of further development expenditure. It is envisaged that if the fund is not used for development, either ordinary shares will be issued in respect of amounts collected by the fund, or that contributions received will be refunded to the members. The issue of shares, refund of monies, or utilisation of the reserve for development purposes is at the discretion of the XXXXXX. No amount was allocated to the reserve during the year.
vii) Non-controlling interest
The non-controlling interest reserve reflects the proportion of the net assets owned by non-wholly owned subsidiaries. The movement in the year reflects the proportion of profits and other comprehensive income allocated to the non-controlling party.
Or
During the year the group acquired the remaining x% of XYZ Limited for XXX. As a result the non-controlling interest was derecognised and the balance was posted to profit and loss reserves in line with Section 22 of FRS 102.
viii) Other reserves
Other reserves relate to costs incurred on the issue of share based payments to employees which was required to be accounted for in equity under Section 26 of FRS 102.
Example 2: Statement of Change in Equity – Non Group Company
For the Year Ended 31 December 2015
|
|
Equity Share Capital |
Revaluation Reserve |
Capital redemp-tion Reserve |
Retained Earnings |
Share premium Reserve |
Total Equity |
|
|
CU |
CU |
CU |
CU |
CU |
CU |
|
Balance at 1 January 2014 |
100,000 |
225,000 |
115,375 |
115,375 |
1,000 |
441,375 |
|
|
|
|
|
|
|
|
|
Changes in ownership interests in subsidiaries which do not result in a loss of control |
|
|
|
|
|
– |
|
Profit for the year |
|
10,000 |
|
83,818 |
|
93,818 |
|
|
|
|
|
|
|
|
|
Balance at 31 December 2014 |
100,000 |
225,000 |
0 |
209,193 |
1,000 |
535,193 |
|
|
|
|
|
|
|
|
|
Balance at 1 January 2015 |
100,000 |
225,000 |
0 |
209,193 |
1,000 |
535,193 |
|
|
|
|
|
|
|
|
|
Equity Shares issued net of issue costs |
20,000 |
|
|
|
5,000 |
25,000 |
|
|
|
|
|
|
|
|
|
Profit for the year |
|
|
|
1,005,772 |
|
1,005,772 |
|
|
|
|
|
|
|
|
|
Equity dividends paid (see note XX) |
|
|
|
(9,900) |
|
(10,000) |
|
|
|
|
|
|
|
|
|
Capitalisation of shares |
1,000 |
|
|
(1,000) |
– |
– |
|
|
|
|
|
|
|
|
|
Changes in ownership interests in subsidiaries which do not result in a loss of control |
|
|
|
|
|
– |
|
|
|
|
|
|
|
|
|
Buyback of own shares |
(1,000) |
|
1,000 |
(2,000) |
|
(1,000) |
|
|
|
|
|
|
|
|
|
Other Comprehensive Income |
|
|
(15,000) |
|
(15,000) |
(15,000) |
|
|
|
|
|
|
|
|
|
Balance at 31 December 2015 |
109,000 |
225,000 |
(14,000) |
1,214,965 |
(15,000) |
1,554,965 |
The below could be included in the notes to the financial statements
i) Revaluation reserve
The revaluation reserve arises as a result of the company’s policy of revaluing property, plant and equipment on a regular basis. During the year the depreciation net of the release of deferred tax on the uplift on the valuation was transferred from profit and loss reserves to the revaluation reserve. On inception of the revaluation reserve the reserve was recorded net of deferred tax.
ii) Cash flow hedge reserve
The cash flow hedge reserve is used to record transactions arising from the company’s cash flow hedging arrangements. There are expected to crystalise within the next 12 months as detailed in note X.
iii) Non-distributable reserve
This reserve arose on transition to FRS 102, where the entity applied the exemption in Section 35 of FRS 102 to deem a previous revaluation on property as deemed cost. The amount included in the reserve is net of deferred tax at the rate the asset is expected to be realised. During the year the depreciation net of the release of deferred tax on the uplift on the valuation was transferred from profit and loss reserves to the non-distributable reserve. On inception of the revaluation reserve the reserve was recorded net of deferred tax.
iv) Capital redemption reserve
The capital redemption reserve reflects the nominal value of shares bought back by the company. There was no activity on this reserve in the current year
v) Share premium
The share premium reflects the premium received on shares issued by the company. The increase arises due to the allotment of 10,000 shares above par during the year as detailed in note X.
vi) Capital development fund
The capital development fund is operated to accumulate funds to meet the cost of further development expenditure. It is envisaged that if the fund is not used for development, either ordinary shares will be issued in respect of amounts collected by the fund, or that contributions received will be refunded to the members. The issue of shares, refund of monies, or utilisation of the reserve for development purposes is at the discretion of the XXXXXX. No amount was allocated to the reserve during the year.
vii) Non-controlling interest
The non-controlling interest reserve reflects the proportion of the net assets owned by non-wholly owned subsidiaries. The movement in the year reflects the proportion of profits and other comprehensive income allocated to the non-controlling party.
Or
During the year the group acquired the remaining x% of XYZ Limited for XXX. As a result the non-controlling interest was derecognised and the balance was posted to profit and loss reserves in line with Section 22 of FRS 102.
viii) Other reserves
Other reserves relate to costs incurred on the issue of share based payments to employees which was required to be accounted for in equity under Section 26 of FRS 102.
Example 2(a): Prior year adjustments or change in policy reflected in Statement of Changes in Equity
|
|
Equity Share Capital |
Retained Earnings |
Total Equity |
|
|
CU |
CU |
CU |
|
Balance at 1 January 2014 as previously reported |
100 |
63,600 |
63,600 |
|
|
|
|
|
|
Prior year adjustment – change in accounting policy (see note X) |
– |
– |
– |
|
|
|
|
|
|
Prior year adjustment – correction of material error (see note X) |
|
85,500 |
85,500 |
|
|
|
|
|
|
Balance at 1 January 2014 as restated |
100 |
149,100 |
149,100 |
|
Profit for the year as previously reported |
|
351,000 |
355,500 |
|
|
|
|
|
|
Prior year adjustment – change in accounting policy (see note X) |
– |
– |
– |
|
|
|
|
|
|
Prior year adjustment – correction of material error (see note X) |
|
4,500 |
4,500 |
|
|
|
|
|
|
Profit for the year as restated (see note X) |
|
355,500 |
355,500 |
|
|
|
|
|
|
Balance at 31 December 2014 |
100 |
504,600 |
504,700 |
|
Example 3: SOCI Statement of Comprehensive Income |
|
|
|
|
|
|
For the year ended 31 December 2015 |
|
|
|
|
|
|
|
|
Notes |
2015 |
2014 Restated |
|
|
|
|
|
CU |
CU |
|
|
Turnover |
|
1 |
XXXXX |
XXXXX |
|
|
Cost of sales |
|
|
(XXXX) |
(XXXX) |
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
XXXX |
XXXX |
|
|
|
|
|
|
|
|
|
Selling and distribution costs |
|
|
(XXX) |
(XXX) |
|
|
Administrative expenses |
|
|
(XXX) |
(XXX) |
|
|
Other operating income |
|
|
XXX |
XXX |
|
|
|
|
|
|
|
|
|
Operating profit |
|
3 |
XXX |
XXX |
|
|
|
|
|
|
|
|
|
Income from shares in group undertakings |
|
4 |
XXX |
XXX |
|
|
Income from shares in other financial assets |
|
4 |
XXX |
XXX |
|
|
Income from shares in participating interests |
|
5 |
XXX |
XXX |
|
|
|
|
|
|
|
|
|
Profit before interest and taxation |
|
|
XXXX |
XXXX |
|
|
|
|
|
|
|
|
|
Interest receivable and similar income |
|
6 |
XXX |
XXX |
|
|
|
|
|
|
|
|
|
Interest payable and similar income |
|
7 |
(XXX) |
(XXX) |
|
|
|
|
|
|
|
|
|
Profit before taxation |
|
|
XXXX |
XXXX |
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
|
8 |
(XXX) |
(XXX) |
|
|
|
|
|
|
|
|
|
|
Profit after taxation and profit for the financial year |
|
|
100,000 |
355,500 |
|
Retained earnings brought forward at 1 January 2015 (1 January 2014) as previously reported |
414,600 |
63,600 |
|
Prior period adjustment – change in accounting policy |
9 XXX |
XXX |
|
Prior period adjustment – correction of error |
10 90,000 |
85,500 |
|
Retained earnings brought forward at 1 January 2015 (1 January 2014) as restated |
11 504,600 |
504,600 |
|
Dividend paid |
12 XXX |
(XXX) |
|
Retained earnings brought forward at 1 January 2015 (1 January 2014) |
13 604,600 |
504,600 |
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]