First time adoption of IFRS

Produced by Tolley in association with

Corporation Tax

Guidance

EU-listed groups have been required to apply EU-endorsed IFRS for their consolidated accounts since 2005, and UK company law has allowed any UK company the option of applying EU IFRS if they choose to do so. From 1 January 2021, UK companies wishing to use IFRS have to use UK-endorsed IFRS ― this was identical to EU IFRS on that date, but the UK may decide not to endorse parts of IFRS subsequently.

In practice, relatively few companies have adopted IFRS because there has been little practical benefit in doing so for small private companies. For the subsidiaries of larger groups there have been concerns around potential tax implications of conversion and also a reduction in distributable reserves under IFRS.

Background ― developments in UK GAAP and IFRS

In November 2012, the Accounting Council issued FRS 100 (Application of Financial Reporting Standards) and FRS 101 (Reduced Disclosure Framework – Disclosure exemptions from EU-adopted IFRS) for qualifying entities as final standards. FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Malcolm Greenbaum

Director and Principal Trainer at Greenbaum Training and Consultancy Limited

Malcolm is a UK Chartered Accountant and Chartered Tax Advisor winning the John Wood Medal in the November 1995 CIOT sitting for the best paper on business taxation. He was previously Director of Finance and Taxation Programmes at BPP Professional Education and has delivered IFRS, US GAAP, UK Tax and VAT training (at all levels from an introduction to the complexities of IAS 39) to a multitude of organisations world-wide since 1992. Malcolm has particular experience in delivering bespoke training programmes to multi-nationals in the financial services, transport and energy sectors as well as delivering UK tax and VAT update programmes to accounting and law firms. He is passionate about training and his enthusiasm ensures that the participants enjoy the learning experience whilst gaining knowledge through their engagement in the sessions and through encouraging them to ask questions and discuss practical issues they may have. Malcolm also provides consultancy services to companies and accounting firms, including provision of VAT advice, reviewing accounting policy manuals and advising on accounting treatments of various transactions. In his spare time, Malcolm enjoys flying having gained a Private Pilot's Licence in 2014.

Popular Articles

Personal Tax

Losses on shares set against income

Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note

14 Jul 2020 12:12 | Produced by Tolley Read more

Corporation Tax

Non-trading deficits on loan relationships

Non-trading deficits on loan relationshipsOverview of non-trading deficits (NTDs)When a company’s debits on its non-trading loan relationships and derivative contracts in an accounting period exceed the credits on its non-trading loan relationships and derivative contracts in the same period (the

14 Jul 2020 12:17 | Produced by Tolley Read more

Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more

UU��ֱ��