UK GAAP introduced with prime purpose of replacing FRSSE 2008
SCOPE:
The FRSSE may be applied to all financial statements
intended to give a true and fair view of the financial position and profit or
loss (or income and expenditure) of all entities that are:
(a) small companies or small groups as defined in
companies legislation preparing Companies Act individual or group accounts; or
(b) entities which are not registered with Companies House but would also qualify under (a) if they
had been incorporated under companies legislation, with the exception of
building societies.
Its applicable for accounting periods starting from 01.01.2015 and available only for 1 year. You can call this GAAP a stop gap arrangement for transition from old UK GAAP to new UK GAAP. It is not available for accounting periods starting from 01.01.2016.
NOT
APPLICABLE TO:-
FRSSE does not apply to:
(a) large or medium-sized companies, groups and other
entities;
(b) public companies;
(c) companies preparing individual or group accounts in
accordance with international accounting standards;
(d) companies preparing individual or group accounts in
accordance with the fair value accounting rules for certain assets and
liabilities set out in Section D of Schedule 1 of Regulation 2008/409 to the
Companies Act 20065 ;
(e) a company that is an authorised insurance company, a
banking company, an emoney issuer, an MifId investment firm or a UCITS
management company or a company that carries on insurance market activity;
(f) a person (other than a small company) who has
permission under Part 4 of the Financial Services and Markets Act 2000 (in the
UK) to carry on a regulated activity or, notwithstanding the definition of a
small company in the legislation, companies authorised under the Investment
Intermediaries Act 1995 (in the Republic of Ireland); or
(g) members of an ineligible group.
A group is ineligible if any of its members is:
(i) A public
company;
(ii) A body corporate (other than a company) whose shares
are admitted to trading on a regulated market in an EEA State;
(iii) A person (other than a small company) who has
permission under Part 4 of the Financial Services and Markets Act 2000 to carry
on a regulated activity;
(iv) A small company that is an authorised insurance
company, a banking company, an e-money issuer, a MifId investment firm or a
UCITS management company; or
(v) A person who carries on insurance market activity.
Caveat
The opinions expressed are those of Mr. Devendraprasad Kankonkar (Deva). The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for yourself as the advice may change based on your circumstances.
