FRS102 for non accounting professionals

km991148

Hi,

I am a tradesman with own LTD company. Accountants have billed me for them adopting the new FRS102 accounting standard.

Can someone tell me / point me to a resource explaining what work the accountants would do and what (if any) benefit there is to me?

superb choice of username

km991148 wrote: »

Hi,

I am a tradesman with own LTD company. Accountants have billed me for them adopting the new FRS102 accounting standard.

Can someone tell me / point me to a resource explaining what work the accountants would do and what (if any) benefit there is to me?

How much did they charge?

The benefit to you is that your accounts will continue to meet statutory requirements, whereas they wouldn't if there was no change.

The work done depends on how complicated your accounts are. Most likely they are not complicated and all that was required was bit of formatting changes.

Depending on the software they use and how complicated your set up is, time taken could have been as little as half an hour...

km991148

superb choice of username wrote: »

How much did they charge?

The benefit to you is that your accounts will continue to meet statutory requirements, whereas they wouldn't if there was no change.

The work done depends on how complicated your accounts are. Most likely they are not complicated and all that was required was bit of formatting changes.

Depending on the software they use and how complicated your set up is, time taken could have been as little as half an hour...

I thought this may be the case. I cant see how any semi organised firm would have to go to great lengths to change from one standard to another. The fee was not massive but at 570 ex vat its not insignificant..

DmanDmythDledge

It's them chancing their arm, no doubt. To be bluntly honest, I would do it myself. But as you are asking the question is it a genuine cost to them the answer is no. They would have incurred more time no doubt, but it would be very little time and, as more than likely formatting, probably carried out by junior level staff.

CIARAN_BOYLE

DmanDmythDledge wrote: »

It's them chancing their arm, no doubt. To be bluntly honest, I would do it myself. But as you are asking the question is it a genuine cost to them the answer is no. They would have incurred more time no doubt, but it would be very little time and, as more than likely formatting, probably carried out by junior level staff.

New standard

https://www.frc.org.uk/Our-Work/Publications/Accounting-and-Reporting-Policy/FRS-102-The-Financial-Reporting-Standard-applicab.pdf

Under old FRS they would have produced a P&L, a balance sheet and associated notes. Now there is an extra cash statement and reformatting. Lets say an hour for the formating and a €50 surcharge for you.

The rest is the practice seeking to pass along the general requirements of retraining (whether external courses or internal training days) to their customers.

CIARAN_BOYLE

km991148 wrote: »

I thought this may be the case. I cant see how any semi organised firm would have to go to great lengths to change from one standard to another. The fee was not massive but at 570 ex vat its not insignificant..

Also if you would care to send me your accounts for this year and last year I would be willing to see if there is anything weird (that requires significant adjustment based on the transition from Irish GAAP to FRS102.

Bobby1984

km991148 wrote: »

I cant see how any semi organised firm would have to go to great lengths to change from one standard to another.

Have you read the standard??? It is massive.

Without going through it in detail, how would anyone know the effect it has on their accounts. Why do people not expect accountants to pass on the cost of purchasing new software and training staff on the new standard??

However, if your accounts are as basic as you describe, I would agree that you were overcharged. You could possibly get the cost reduced if you had not been notified of the cost and if you didn't agree to it.

You could have possibly prepared your accounts under FRSSE for another year and then adopted the provision for Micro-Entities (again assuming that you have a small basic company) once the legislation is enacted.