FRS 102 Illustrative Financial Statements - EY

1 frs 102 Illustrative Financial Statements ;gehdqaf_ oal` >JK )(* L`] >afYf[aYd J]hgjlaf_ KlYf\Yj\ 9hhda[YZd] af l`] MC Yf\ J]hmZda[ g^ Aj]dYf\$ Yk akkm]\ af EYj[` *()+ frs 102 Illustrative Financial Statements Complying with frs 102 The Financial reporting Standard Applicable in the UK and Republic of Ireland, as issued in March 2013 Copyright Ernst & Young LLP 2013. The United Kingdom firm Ernst & Young LLP is a limited liability partnership registered in England and Wales with a registered number OC300001 and is a member practice of Ernst & Young Global.

2 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms of licences issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London, W19 9HE, United Kingdom. Enquiries concerning reproduction outside those terms should be sent to the authors at the address below: Financial reporting Group Ernst & Young LLP 1 Lambeth Palace Road London SE1 7EU United Kingdom E-mail: Published 2013 by: Ernst & Young LLP Financial reporting Council (FRC).

3 Adapted and reproduced with the kind permission of the Financial reporting Council. All rights reserved. For further information, please visit or call +44 (0)20 7492 2300. This publication has been carefully prepared, but it necessarily contains information in summary form and is therefore intended for general guidance only, and is not intended to be a substitute for detailed research or the exercise of professional judgement. Ernst & Young LLP can accept no responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication.

4 On any specific matter, reference should be made to the appropriate adviser. The Illustrative Financial Statements have been prepared by the Financial reporting Group of Ernst & Young LLP. Printed and bound in the UK. Introduction iii This publication contains the annual report of the UK GAAP consolidated Financial Statements and parent company Financial Statements of a mythical UK private company which has applied frs 102 Good Practice Group Limited. The report is Illustrative only and does not attempt to show all possible disclosure requirements.

5 In case of doubt as to the legal or other requirements, it is essential to refer to the relevant source and, where necessary, to seek appropriate professional advice. The volume is laid out with the commentary on the left hand pages and the Financial Statements on the right hand pages. Gaps between items are in order to align commentary with the relevant Financial Statements item, as far as possible, for the convenience of users. Although the Illustrative Financial Statements attempt to show the most likely disclosure requirements of manufacturing companies, they should not be regarded as a comprehensive checklist of statutory and accounting requirements.

6 They comply with frs 102 , the Companies Act 2006 and with other requirements in force at 31 December 2013. FRS 100 Application of Financial reporting Requirements FRS 100 - Application of Financial reporting Requirements was issued in November 2012 and sets out the Financial reporting requirements for UK and Republic of Ireland entities. The standard is applicable to all UK and Republic of Ireland companies with accounting periods beginning on or after 1 January 2015, although early application is permitted subject to the provisions in FRS 101 (Reduced Disclosure Framework) and frs 102 .

7 Financial Statements (whether consolidated Financial Statements or individual Financial Statements ) that are within the scope of this FRS must be prepared in accordance with the following requirements: (a) If the Financial Statements are those of an entity that is eligible to apply the Financial reporting Standard for Smaller Entities (FRSSE), they may be prepared in accordance with that standard. (b) If the Financial Statements are those of an entity that is not eligible to apply the FRSSE, or of an entity that is eligible to apply the FRSSE but chooses not to do so, they must be prepared in accordance with frs 102 , EU-adopted IFRS or, if the Financial Statements are the individual Financial Statements of a qualifying entity.

8 FRS 101 sets out a reduced disclosure framework which addresses the Financial reporting requirements and disclosure exemptions for the individual Financial Statements of subsidiaries and ultimate parents that otherwise apply the recognition, measurement and disclosure requirements of EU-adopted IFRS. frs 102 The Financial reporting Standard applicable in the UK and Republic of Ireland frs 102 is a single Financial reporting standard that applies to the Financial Statements of entities that are not applying EU-adopted IFRS, FRS 101 or the FRSSE.

9 frs 102 was issued in March 2013 and early application is permitted for accounting periods ending on or after 31 December 2012. An entity shall apply this standard for accounting periods beginning on or after 1 January 2015, unless they are applying either IFRS as adopted in the EU or FRS 101. frs 102 is organised by topic, with each topic presented in a separate numbered section. There are 35 Sections and a Glossary within the FRS. All paragraphs in frs 102 have equal authority. In some sections appendices of implementation guidance or examples are provided.

10 Some of these are an integral part of the FRS, while others provide guidance on its application the status is specified on each. Introduction iv Narrative accompanying the Financial Statements The narrative accompanying the Financial Statements contains source references to the Companies Act, frs 102 , Urgent Issues Task Force (UITF) abstracts and pronouncements of the Institute of Chartered Accountants in England and Wales (ICAEW). When the narrative accompanying the Financial Statements is italicised, it indicates that the requirement discussed is not in fact illustrated.