UK accounting requirements are changing. The Financial Reporting Council (FRC) has decided to replace all existing UK accounting standards (“old UK GAAP” comprising FRSs, SSAPs and UITF abstracts) with a system based on International standards (“new UK GAAP”).

The effective date is accounting periods commencing on or after 1 January 2015 (although the new requirements will of course need to be applied to comparative figures in the first year).

What will change?

There will be major changes to the look of your accounts as well as potentially significant differences in the way your profits are determined. These changes may affect:

  • The reported profit for the year, including gross profit margins
  • asset values, which could have a major impact on your bank covenants
  • The timing of tax payments
  • The company’s ability to pay dividends

But don’t panic, we at Alpha Audit Services Limited can help you identify those areas which will be affected by new UK GAAP and provides you with a summary of the key areas of change.

We can help with the conversion process by:

Determining how the change will affect your current result reported under UK GAAP > Assisting with implementing the standards and changing accounting policies to comply > Working with you to identify any changes necessary to your accounting systems

If you’d like to have a chat about how these changes could affect your business, or for some no-obligation advice, just call Alpha Audit Services on +44 (0) 7595 116 506.