by John McCarthy Consulting Ltd. | Mar 19, 2019 | Blog, News
Challenge your knowledge on the Solicitors Accounts) Regulations 2014 with this short quiz:
- ‘I received a cheque from a client on the balancing date, the client ledger card was updated to show receipt of the money, but the cheque was not lodged to the bank until two weeks later. The reporting accountant’s report may show this as an outstanding lodgement.’ True or False?
- Where a solicitor acting for the purchaser receives monies from the purchaser’s lender and the cheque is drawn in the solicitor’s name and the proceeds are required to be transferred to the vendor “without delay”, the cheque may be transferred to the vendor without being lodged to the Client Account. True or False?
For the answers to these and all your other questions – see our on-demand webinar here: Solicitors Accounts Regulations 2014.
For on-demand webinars on other developments in Investment Property Accounting, FRS 105, Common Errors in FRS 102 Accounting and the latest on FRS 105 and company law, visit our new online webinar training website. Once viewing is completed customers will receive a CPD Certificate confirming their learning.
by John McCarthy Consulting Ltd. | Mar 14, 2019 | Blog, News
The latest on Investment Property Accounting under FRS 102
Challenge your knowledge on Investment Property Accounting under FRS 102.
Some of the rules around the accounting for investment properties under FRS 102 have changed for accounting periods commencing 1 January 2019.
Test your knowledge of these changes with this quick quiz.
- The changes to the investment property rules including those about ‘undue cost or effort’ introduced in the Triennial Review come into effect no earlier than 1 January 2019. True or False?
- If an investment property company early adopts the investment property valuation changes allowed under the March 2018 version of FRS 102 in its financial statements for the year ended 31 December 2018, what would its transition date be?
For the answers – see our webinar here Investment Property Accounting. Once viewing is completed customers will receive a CPD Certificate confirming their learning.
For webinars on the developments in Investment Property Accounting, FRS 105, Common Errors in FRS 102 Accounting and the latest on FRS 105 and company law, visit our new online webinar training website.
by John McCarthy Consulting Ltd. | Jan 4, 2019 | News
Suite of seven staff factsheets issued in December 2018
The
Financial Reporting Council (FRC) has issued a suite of seven staff factsheets
in December 2018 on aspects of FRS 102, including the 2017 triennial review.
These
become effective from 1 January 2019, with early adoption allowed under certain
conditions. They are available here:
Fact Sheet 1 – FRS 102: Triennial Review
2017 Amendments (PDF)
This factsheet consists of two parts: the first part outlines the five principal amendments that have been made while the second part outlines notable amendments by section. FRS 102 .
Fact Sheet 2 – FRS 102: Triennial Review 2017 Transition (PDF) – outlines the most notable amendments by section.
There are five other Factsheets which
are fully updated for the recent changes as follows:
Fact Sheet 3 – FRS 102: Illustrative Statement of Cash Flows (PDF)
Fact Sheet 4 – FRS 102: Financial Instruments (PDF)
Fact Sheet 5 – FRS 102: Property: Fair Value Measurement (PDF)
Fact Sheet 6 – FRS 102: Business Combinations (PDF)
Fact Sheet 7 – FRS 102: Transition to FRS 102
For more on the latest FRS 102 developments please see our webinar, ‘FRS 102 The New Regime from 1 January 2019’, here.
We have several other up to date webinars to choose from here with special offer prices for bundle purchases.
by John McCarthy Consulting Ltd. | Nov 22, 2017 | News
The new Companies (Accounting) Act, 2017 came into effect from 9 June 2017. It has brought with it, some strange consequences for micro-companies, in particular.
The Act brings into law a new accounting standard for measurement and presentation called FRS 105.
This essentially new accounting framework, among other things, will mean that certain qualifying ‘micro’ companies will not have to disclose details of directors’ remuneration, profit and loss account or include a director’s report in their filed financial accounts. Importantly the standard is not available to charities and not for profit entities and regulated entities. It cannot be used by groups and cannot be used if the micro-entity is being consolidated.
Another issue that arises, is that financial statements prepared under FRS 105 are deemed to automatically give a ‘true and fair view’ without the addition of further explanatory notes beyond those set out in company law, under the Companies (Accounting) Act, 2017. FRS 105 is therefore deemed to be a ‘compliance framework’ and not a ‘fair presentation’ framework (as FRS 102 is). Letters of engagement and representation with clients, using FRS 105, will need amended to make this point clear. Amended letters are available by contacting us here.
Let’s explain these two types of accounting framework:
A ‘fair presentation’ framework (e.g. FRS 102) is one that requires compliance with the provisions of the framework but in addition that it acknowledges that in achieving fair presentation, management might have to make additional disclosures that are not specifically required by the framework and, in extremely rare circumstances, it might be necessary to depart from the requirements of the framework to achieve fair presentation of the entity’s financial position and performance in the financial statements.
A ‘compliance framework’, on the other hand, requires compliance with the provisions of the framework i.e. strict adherence to certain rules is required and the preparers of the financial statements have no choice but to follow the requirements of the framework.
To hear more about this and the latest Accounting Update, come to our next CPD course on Monday 27 November 2017 at the Talbot Hotel Stillorgan.
Click here for details and booking on all November courses.
by John McCarthy Consulting Ltd. | Jul 27, 2017 | News
The UK Charities Audit Practice Note (PN 11) is the nearest available guidance that charity auditors in Ireland have to professional best practice for external audit work on charities and non-profit entities.
The latest version of PN 11 is currently out for consultation in a bid to improve the quality and effectiveness of the audit of charities. It updates the previous version, last published in 2012.
Charity audits are high risk. Auditors have always been expected to have relevant knowledge corresponding to the task in hand. The new proposals reiterate this point, requiring audit teams to have:
- suitable understanding of the type of charity being audited;
- the key risks affecting the charity;
- the applicable legislative framework;
- the principles of FRS 102;
- the Charities SORP (Statement of Recommended Practice);
- the charity’s governing documents, which may include specific reporting requirements;
- the legal responsibilities and duties of charity trustees, and
- the regulatory framework within which charities operate.
The main changes in the document are a response to the introduction of FRS 102 and the revised SORP accounting regime as well as other legislative changes in the UK. It is expected that Ireland will implement the FRS 102 Charity SORP sometime in 2018, once the legal requirements in the Irish Charities Act, 2009 are updated to include charities that are companies.
What is changing in PN11?
The new PN is much shorter than before– nearly half the length of previous versions –based on a policy decision from the Financial Reporting Council (FRC) to remove duplication of material from within the practice note and from the ISAs. It means that users may need to cross-refer more often in future to other sources of information.
Going concern
Going concern will be of special interest, as more charities face increasing funding pressures. The PN includes a revised list of events that may cast doubt on the going concern assumption, including the failure to meet reserve targets, and regulatory investigation.
Consultation closing date
The closing date for the consultation is 25 August 2017 and the ED is available at this link PN 11 exposure draft.
To hear more about the Accounting and Audit of Charities/Not for Profit Entities, come to our next CPD course on the topic on Thursday 30 November 2017.
We also have other CPD courses in November 2017. Click here for details and booking on all courses.
