David Miller from The Customs People clarifies the practical measures small businesses trading...
IFRS Conversion & Financial Reporting Options
Limited companies in the UK have a choice as to what regime to use to prepare their statutory accounts. For most unlisted companies, this will be under the current UK Generally Accepted Accounting Principles (‘UK GAAP’), FRS 100-105. However, since the transition to FRS 100-105, some companies are converting their accounts to International Financial Reporting Standards (‘IFRS’) which are more closely aligned to the new UK GAAP than the old UK GAAP.
Although not a decision to be taken lightly, there are a number of reasons why our clients are taking this approach including:
- To enable a group to recognise acquired goodwill at fair value rather than having to amortise it over a finite period.
- To prepare for a future floatation or sale to an international buyer.
- To align group financial reporting in an international group.
- To assist with fund-raising, particularly from overseas investors.
HURST is well-versed in helping our clients consider their reporting options and, where appropriate, our specialist team can assist with converting to IFRS as well as ongoing IFRS reporting.
If you'd like to know more, contact Helen Besant-Roberts on 0161 477 2474 or email firstname.lastname@example.org