Who decides which standard to follow? It would take a while to explain the differences to the client. Take it longer for the client to understand. To me, at the minute, 102 seems to cover all bases, gives a better view of a business. Allows for revaluation -
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
This links back to the conversation about the engagement letter in that one explains to the directors and evidences in writing that their responsibilities include :
- Keeping adequate books and records
- Preparing the accounts
- Determining the accounting standards upon which such accounts are prepared.
That they employ our services and expertise does not divest them of that responsibility.
I think that most accountants will prefer to stick with FRS102 as the financial statements prepared under 105 are to be honest a bit of a joke (much like abreviated accounts).
However, it will be down to you to advise rather than dictate so be prepared for the various arguments around that chat.
There is an accountant who regularly contributes over of Aweb called Steve Collings. A good approach to get a sound footing in the various arguements may be to do a Google search that includes accountingweb "Steve Collings" FRS105 which should lead you to numerous discussions.
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Hi
Did you see this article on aweb back in October? Unfortunately I parked it to read later and never hot back to it (don't seem to have had many spare minutes for such things since Oct!)
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Yes I get regular emails from aweb. The only concern I have sometimes is, maybe rightly or wrongly - is that small to the guys over there can be large to use.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Wasnt sure if you knew you can edit your posts Johnny, but perhaps not if you are on your mobile. I can from my iphone, but with some it depends how you get access to the forum.
I think some of those Aweb guys have got large numbers of clients and lots of staff, but there are quite a few on there who are also one man bands looking after a range of businesses, much as on here. I reckon we certainly have our fair share of companies outside the micro entity criteria. Although anything less than £75m t/o is small to me after my last job.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi Joanne. Sometimes my phone will allow me to edit if I can switch to full site, of late my phone says noooooooo. I can see how you see 75 million as large!! Will you guys use both standards? If not requested by client will you automatically use 102?
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
When you deal with money on the scale of people such as Joanne and myself you don't think of it as money at all, it's just numbers (that have to balance perfectly!).
Also you don't think of in branch currency as money either. It's stock no different to cans of beans to a supermarket.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
