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

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

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

Class 1 v Class 1A

Class 1 v Class 1AClass 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met

Owner-Managed Businesses

Sales, advertising and marketing

Sales, advertising and marketingExpenditure on sales, advertising and marketing activities may include amounts which are disallowable for the purposes of calculating trading profits. This may be because the expenditure is:•capital in nature (see the Capital vs revenue expenditure guidance note)•not

14 Jul 2020 13:28 | Produced by Tolley Read more

Trusts and Inheritance Tax

Holdover relief for disposals by trustees

Holdover relief for disposals by trusteesOverviewWhere a capital gain has been realised on an asset that has been disposed of and that disposal was not for full value (that is not in an arm’s length sale) then holdover relief may be available. This will happen when trustees appoint capital assets

14 Jul 2020 11:54 | Produced by Tolley Read more

��˾��ҹ��