The 1st edition of this book was published in October 2015 when FRS 105 was fairly new and there was an emphasis on transition from old GAAP to new GAAP. Whether practitioners decided to adopt the new Financial Reporting Standard for Micro-Entities or the revised FRS 102, they needed to understand the new terminology and formats of the financial statements.
Three years later, there have been several new developments which should be reflected, including:
– the Companies (Accounting) Act 2017 for small companies in the Republic of Ireland, which did not feature in the 1st edition as it had not been enacted
– amendments arising from the FRC’s Triennial Review in December 2017
– FRS 105 amendments, together with issues relating to micro-entities in the Republic of Ireland who previously couldn’t use FRS 105.
In addition, the new content will include:
– amendments to the illustrative financial statements to reflect changes in company law regarding presentation and the finalised small company thresholds which were previously only in draft format
– additional material on the filing regime at Companies House for small companies now that most companies prefer to file ‘filleted’ accounts
– reference in the tax chapter to the updated HMRC guidance via their Overview Papers
– a complete restructure from chapter 12 onwards so that each accounting area is now in its own standalone chapter which reflects the implementation feedback
– updated worked examples for things such as the effective interest method/financial instruments
– removal of all references to the FRC’s previous 2009 guidance on going concern and inclusion of the up-to-date 2016 version. This is resulting in considerable changes to chapter 4.