Yes it's true, FRSSE 2008 cannot be used for accounting period
starting from 01.01.2015 hence FRSSE 2015. It's also true that FRSSE 2015 cannot be used for accounting periods starting from 01.01.2016.
FRSSE 2008 v/s FRSSE 2015 - Differences
IN FRSSE 2015:
1. Assets are to be assessed annually and impaired based on the fair
value.
2. Maximum life of intangible assets, including goodwill, is deemed
to be five years unless more than five years can be justified. Under FRSSE
2008, the maximum life was 20 years.
3. Related party transactions and key management personnel definitions
have changed drastically and are in line with FRS 102.
4. Exemption from disclosure of intra-group related party
transactions where any subsidiary to the transactions is 100% owned by the
group has been added.
Once a decision has been made you must follow FRSSE 2015 in
full, you cannot pick and choose parts of FRS 102 and parts of the FRSSE 2015.
Apart from the above there are no changes for small company accounts.
Apart from the above there are no changes for small company accounts.
Areas not covered by FRSSE 2015 and which will require references to FRS 102
are:
a. Accounting for
associates and joint ventures.
b.
Basic Financial Instruments.
c.
Donated goods and services.
d.
Donations, grants, legacies, etc.
e.
Heritage assets
f. Mergers
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.
