frs 102 section 1a share capital disclosure

In some cases where revenue expenditure is added to the cost of an asset, tax law follows the accounts by recognising for tax purposes amounts reflected in profit and loss account by way of depreciation charge to the extent that they are a write off of revenue expenditure. As noted above there is no equivalent to Renewals accounting (FRS 15 paragraph 97-99) under Section 17 of FRS 102 so there may be an adjustment for tax purposes made under the change of basis legislation see part B of this paper. In contrast, both Section 12 of FRS 102 and the IAS 39 option typically require all derivatives to be accounted for separately and to be measured at fair value. However, even with such exceptions and exemptions its expected that on transition there may be a significant number of adjustments both to the carrying value of assets and liabilities recognised previously under Old UK GAAP and in terms of newly recognised assets and liabilities. These example financial statements have been prepared to show the This isnt permitted under IAS, FRS 101 or FRS 102 which all require the foreign currency amount to be translated using the spot exchange rate. Entity has claimed exemption from reporting comparative information on certain items of share capital in line with FRS 102 1.12(a) [true/false] . A small entity shall therefore also consider the requirements of paragraph 1A.16 [ Instead disclosures follow the requirements of Section 1A of FRS 102 which replicate the requirements of the disclosures for small companys regime in the amended 2014 Companies Act. ICAEW members have permission to use and reproduce this helpsheet on the following conditions: For further details members are invited to telephone the Technical Advisory Service T +44 (0)1908 248250. Tax law determines the value of trading stock for the business ceasing and its value for the successor business see Chapter 11 Part 3 CTA 2009. Note that where HMRC considers that there is, or may have been, avoidance of tax the analysis as presented wont necessarily apply. Adobe Connect Users Mailing Address Database, How to avoid leaving nearly 70k on the table, Getting started with client engagement letters, Working environment in Account / Audit Practise. If the standard setters really want to be taken seriously they'll just have to specify what they want or don't want. Its possible for companies incorporated outside of the UK to be resident in the UK. In September 2015, FRS 102 was amended to include a new Section 1A (S1A). (1) Convertible loans and asset-linked instruments (pre-2005). Model accounts available from Bloomsbury Core Accounting and Tax Service Model accounts available online For example the accounting on issue of a compound financial instrument is comparable across Old UK GAAP (FRS 25) and FRS 102 (section 22). Section 1A only provides disclosure exemptions. Where any tax advantage is already negated by the connected companies then the transfer pricing rules are unlikely to apply. See Part B of this paper for commentary on this. The general principles of revenue recognition within FRS 5 Application note G are that revenue is recognised when the seller obtains the right to consideration in exchange for the goods, services, or work performed. This also applies where a company is applying FRS 102. Access to our exclusive resources is for specific groups of students, users and members. These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting . For companies that applied SSAP 20 many wont encounter differences but when they do they may be significant. Since the accounting is followed where the incentive isnt capital (for example, a rent free period) the difference may alter the timing of income recognition for tax purposes. Where such a difference arises and no section 730 election has been made section 872 treats an increase as a taxable credit, and a decrease as an allowable debit, arising at the start of the later accounting period. Furthermore, under FRS 102 a company effectively has 3 options for the accounting of financial instruments: (i) Sections 11/12 of FRS 102; (ii) IAS 39; or (iii) IFRS 9. A Financial Reporting Exposure Draft, FRED 82 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs - Periodic Review, was published in December 2022, with a closing date of 30 April 2023. (4) Currency, commodity and debt contracts in a hedging relationship (Regs 7 or 8 contracts). Section 1A.17 (with regards to notes) outlines that, although small . movement on fair value reserves to be disclosed, In order to cover off the above requirements it would make sense to include a SOCE, disclose a change in accounting policy in the accounting policy section, equity at date of transition, and end of comparative year under old GAAP reconciling to, equity at each period under FRS 102 with notes on the reasons for adjustments; and. Where a company is a UK investment company it may be eligible to make a designated currency election. Accounts prepared in accordance with Old UK GAAP are required to present, amongst other things, a profit and loss account (P&L), balance sheet and where applicable a statement of total recognised gains and losses (STRGL). Debt may be restructured or have its terms modified such that, in accordance with FRS 5 and Old UK GAAP (where FRS 26 isnt adopted), no gain or loss would be recognised in the accounts. Section 11 addresses Basic financial instruments while Section 12 considers all other financial instruments. We can create a package that's catered to your individual needs. The most common example is where there is a loan relationship between connected companies. opt for FRS 102 Section 1A Small Entities of that standard to avail of reduced disclosures or even adopt the full version of FRS 102. For tax purposes the treatment of employee benefit contributions is dealt with at Part 20 Chapter 1 CTA 2010. The use of the fair value model is likely to represent a significant change in the measurement basis of stock and hence the timing of profits/losses on such stock. See CFM 33200 onwards for further details of this exemption. Revenue recognition under FRS 102 will primarily be determined by Section 23 of FRS 102. Where a company has a loan liability or a derivative to act as a hedge of the exchange risk from holding an investment in shares, regulations 3 and 4 of the Disregard Regulations (SI 2004/3256) would typically mean that the exchange gain or loss on the loan or derivative would be disregarded for tax. The COAP Regulations (reg 3C(2)(e)) exempts the spreading on transition amounts to the extent that they hedge future cashflows. Small companies applying FRS 102 can take advantage of generous disclosure exemptions in The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view. Section 1A will be updated for the new legislation once enacted. Talking of disclosures, why did you post this anonymously? The part of the UK where the entity is registered; Whether it is a public or private company and whether it is limited by shares or guarantee; A statement of compliance with FRS 102, adapted to refer to Section 1A; A statement that the entity in question is a public benefit entity; A disclosure relating to material uncertainties related to going concern; A dividends declared and paid or payable during the relevant accounting period; On first time adoption of FRS 102, an explanation of how the transition has affected the financial position and performance of the entity. Previously, companies had the ability to elect out from the Regulations. FRS 102 Section 24 states that the grant wont be recognised until the entity has reasonable assurance that it will or has complied with the grant conditions and that the grants will be received. The amount of the debit or credit is the difference multiplied by the fraction tax written-down value/accounting value, where both these values are those at the end of the earlier period. Discover the Accounting Excellence Awards, Explore our AccountingWEB Live Shows and Episodes, Sign up to watch the Accounting Excellence Talks. The following commentary concerns permanent-as-equity loans, for example made by a parent to a subsidiary undertaking, which represent an arms length provision. Regulation 9A will apply in respect of designated cash flow hedges, unless the instrument is within regulation 7, 8 or 9 of the Disregard Regulations. FRS 10 does permit the use of an indefinite UEL in which case its not amortised but is instead subject to annual impairment reviews. This will allow companies to prepare financial statements under Section 1A of FRS 102 by applying the requirements of the small companys regime in the Companies Act. Under Old UK GAAP where FRS 26 doesnt apply, where debt is restructured or have its terms modified, no gain or loss would be recognised in the accounts. The Technical Advisory Service comprises the technical enquiries, ethics advice, anti-money laundering and fraud helplines. I assume you would include the changes in share capital on the Statement of Equity. However, s349 CTA 2009 requires the profits and losses on the asset continue to be brought into account for tax purposes as if the change to fair value accounting has not been made. Access a PDF version of this helpsheet to print or save. Consequently either on transition (where the exemption to retain previous GAAP figures isnt used) or on subsequent business combinations, more intangible assets may be recognised under FRS 102 than would have been recognised under Old UK GAAP. To help us improve GOV.UK, wed like to know more about your visit today. In these cases sections 315 to 319 CTA 2009 will apply. Approval by directors on financial statements noting that they show a true and fair view (Section 324 CA 2014). Same as point 1, but if the share class is differente.g. Discover the Accounting Excellence Awards, Explore our AccountingWEB Live Shows and Episodes, Sign up to watch the Accounting Excellence Talks. Exchange differences arising from the retranslation of the net investment arent typically brought into account for Corporation Tax purposes. Companies that will be applying fair value accounting for the first time in a period of account commencing on or after 1 January 2015 will need to decide whether to elect-in to regulations 7, 8 and 9. This section of the paper is applicable for accounting periods commencing before 1 January 2016. Entities that adopt FRS 102 will apply the recognition and measurement requirements of Section 20. Income and expenditure of foreign operations (including branches) are translated from the functional currency of the foreign operation into the companys functional currency at actual or average rates not at closing. Regulations 7 and 8 of the Disregard Regulations deals with currency, commodity and debt contracts used to hedge a forecast transaction or firm commitment. It also states that there is a rebuttable presumption that the UEL wont exceed 20 years. Furthermore, the reduced disclosure requirements permitted by Section 1A of FRS 102 would not typically have any effect on the companys tax position. This gain or loss should reverse over the remaining life of the instrument. *DiBr5-eTZJyEW>UFwKLN%UCHF]_ chj1 OS8)h^4A"}Z[@b(F/|{-4Yq1yyOz2g Mb{QD;Q\-Z8G!y|/dYrM]r>ixn$~ PK ! Where a financial instrument is measured on a different basis under FRS 102 compared with Old UK GAAP its likely that transitional adjustments on adoption of FRS 102 will arise. While Sections 11 and 12 address accounting for financial instruments, there are certain exceptions to their scope including insurance contracts, investments in subsidiaries, associates and joint ventures and leases [footnote 2] . GAAP (FRS 102) and IFRS with reduced disclosures (FRS 101) are all within the Companies Act 2006 framework. Where the loan arises between connected companies, the amounts to be brought into account on the basis of an amortised cost basis of accounting as required by sections 313 and 349 CTA 2009 - in particular this requires the tax treatment to be based on the loan shown in the accounts at cost and adjusted for amortisation and impairments. Sch 3A(51) CA 2014, Include note disclosing the fact the ES PASE was applied if that is the case, Disclose movement on fair value of investments in associates, subsidiaries or joint ventures where held at fair value. These calculate the transitional adjustment by comparing the opening accounting value in the current accounting period with the closing accounting value for the previous accounting period. The relevant legislation for companies is in CTA 2009 Chapter 14 Part 3. FRS 102 differs from Old UK GAAP in respect of UEL. However, Application note G of FRS 5 provides revenue recognition guidance in respect of the sale of goods and services as well as other specific revenue recognition scenarios, SSAP 9 provides guidance in respect of long term contracts and UITF 40 addresses service contracts. Section 1A of FRS 102 encourages the inclusion of a statement of changes in equity, where there are transactions with equity holders (like dividends), to show a true and fair view. In cases where a company stays within the same accounting framework, or otherwise doesnt restate its opening figures, the accounts will normally show a prior period adjustment (PPA) either in reserves or in equity. FRS 5 application note G requires that, on recognition, revenue is measured at the fair value of the consideration received or receivable. However consolidated accounts can be informative and can provide useful information which doesnt show up on the face of the individual accounts. The new legislation will usher in the most comprehensive overhaul of Irish company law in over 50 years and we will provide you with a detailed synopsis of the highlights and notable changes that are to be introduced. No further analysis of these headings is required. Where this happens, the COAP Regulations (reg 3C(2)(d)) disregards any loan relationship adjustment as well. limits frs 102 section 1a quick guide frs102 . Monetary amounts in these financial statements are rounded to the nearest . Section 17 of FRS 102 and FRS 15 are primarily about Property, plant and equipment (PPE) or fixed assets to use the Companies Act and FRS 15 terminology. There are no significant differences between Section 21 of FRS 102 and FRS 12. SSAP 4 requires that grants are recognised when there is reasonable assurance that related conditions, if any, will be met. This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. The effect of this regulation is to disregard for tax purposes the amounts recognised in the statement of equity (as items of other comprehensive income) until they are recycled to the income statement. In contrast to basic financial instruments other financial instruments are typically recognised and subsequently measured at fair value in the P&L. Section 1A outlines the presentation and disclosure requirements only. In all cases the issuer will be required to account for the debt and the equity components separately (see CFM21260). Other transactions entered into in which director has a material interest (Section 309 CA 2014). The derivative contract regime has equivalent rules in sections 597 and 613 to 615 CTA 2009. Generally, the effect of these regulations is that the tax treatment of such contracts follows the Old UK GAAP accounting treatment. All notes for items included in fixed asset section of balance sheet where held at cost/ revalued amount not including assets held at fair value through profit and loss account including details of movement on same for current year (Sch 3A(48)). Consequently, for most companies its not expected that FRS 102 will have a significant tax impact in this area. Where transition adjustments arise include a note in line with full FRS 102 (i.e. Under Old UK GAAP it measures the loan on a historic cost basis. Investment property to be shown separately. This ensures that there is continuity of treatment. EMI options granted to employees which are only exercisable when an agreement has been reached to sell the company and the directors advise in writing the options can be exercised. There are certain exclusions from the COAP Regulations. You can change your cookie settings at any time. First accounts case with EMI share options and considering whether the EMI share options should be recognised in FRS102 s1A accounts. While FRS 102 differs from Old UK GAAP in this regard it should be noted that for companies adopting FRS 102 the format requirements of the Companies Act still apply. For a large majority of accountants that had entities that met the thresholds of and therefore applied the FRSSE (Financial Reporting Standard for Smaller Entities) this will be the first year transitioning to FRS 102 as the FRSSE is abolished for all periods beginning on or after 1 January 2016. Although not required under Company Law, Section 1A encourages certain disclosures in order for the financial statements to show a true and fair view including: For further detail and analysis on Section 1A see our link to our FRS 102 Section 1A quick guide. Key factors in determining this are the currency that mainly influences the sales prices for goods and services and the currency of the country whose competitive forces and regulations mainly determine the sales prices of its goods and services. Accounts prepared under FRS102 Section 1A. Shares issued during the period. Potentially an adjustment would be made to any chargeable gain calculation where the shares are subsequently disposed of. For further guidance on the transitional provisions applying to financial instruments see Part B. The main body of Section 1A sets out the general requirements that apply to small entities. The Institute of Chartered Accountants in England and Wales, incorporated by Royal Charter RC000246 with registered office at Chartered Accountants Hall, Moorgate Place, London EC2R 6EA. Under FRS 102 its required to measure the loan at fair value. Dividends paid/declared (Sch 3A(48) split by amounts included in accruals at period end. This typically has less impact on the calculation of the companys profit for a period (just that its expressed / presented in a different currency). All intangibles and goodwill are presumed to have a finite life and the period over which they are subject to amortisation should reflect this. For periods commencing on or after 1 January 2016 small companies wont be permitted to prepare their accounts in accordance with the FRSSE. Where relevant to its transactions, other events and conditions, a small entity is encouraged to provide the disclosures set out in Appendix E to Section 1A of FRS 102 (March 2018). Depending on to whom the dividends are paid, does their disclosure not possibly get caught by related party transactions per 1AC.35? (7) Reversal of previous exchange gains and losses. The disposal of the investment properties will typically give rise to a chargeable gain. (a) A person or a close member of that person's family is related to a reporting entity if that person: (i) has control or joint control over the reporting entity; (ii) has significant influence over the reporting entity; or (iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity. However, under either Section 12 of FRS 102 or IAS 39, net investment hedging in respect of a shareholding in a subsidiary company is only permitted at consolidation. If you want to start the ACA qualification there are several routes you can take. Section 10 of FRS 102 requires that a change in accounting policy resulting from a change in the requirements of an FRS or FRS abstract is accounted for in line with the requirements of that revised FRS or FRC abstract. We use some essential cookies to make this website work. This deferral was given effect in Change of Accounting Practice (COAP) Regulations (SI 2004/3271), which have been the subject of subsequent amendments. Appendix C of FRS 102 (March 2018) sets out the mandatory minimum disclosure requirements for small entities in the UK (see below for further details). The mechanics of hedge accounting, whether applying Section 12 of FRS 102 or under the IAS 39 option are thereafter comparable. When the standard doesnt contain specific requirements, the change in policy, in a manner comparable to Old UK GAAP, will be applied retrospectively to the earliest date which is practicable as if the new policy had always applied. If shares have been reclassified during the period does this need to be disclosed in the notes. In this case, movements in fair value of investment properties arent taxable. Therefore the PPA is in this example ignored. See CFM38500 for further details. The loan relationship would normally be taxed in line with the amount recognised in the accounts. Such specialised activities arent addressed within this paper. For the period ending 31 March 2020 the company was entitled to . A fixed asset is accounted for under Section 17 when the asset is held for use in the production or supply of goods or services; for rental to others; or for administrative purposes and is expected to be used for more than one accounting period. Members may also wish to refer to the following related guidance and helpsheet: FRS 102 Section 1A details the presentation and disclosure requirements that are specific to small entities choosing to apply the small entities regime (see FRS 102 summary and timelinefor further details regarding an entities eligibility to apply section 1A). See the International Manual for further details of the transfer pricing rules. The COAP Regulations (reg 3C(2)(c)) means that no transitional adjustments arising on such contracts are to be brought into account under these Regulations. What is new if moving from full FRS 102 to Section 1A? FRS 102 requires that when an employee has rendered services to an entity during a period any related holiday pay or similar is accrued for. Are required to give a true and fair view; Must contain a balance sheet, a profit and loss account and notes to the financial statements (and are encouraged to contain a statement of total comprehensive income and a statement of changes in equity, or a statement of income and retained earnings, where necessary to give a true and fair view). Tax relief is unlikely to be affected if an entity has elected for a fixed rate of 4%. However, a sale of a small number of such assets prior to maturity can result in all the HTM assets becoming tainted, such that the assets would be required to be accounted for as being AFS. the accounting treatment required for a S.1A set of financial statements are specified in Sections 9 to 35 of FRS 102). Section 19 of FRS 102 is broadly comparable to FRS 6 and FRS 7. In contrast FRS 102 requires that the change is recognised in the statement of change in equity. FRS 26 is aligned to IAS 39 and is mandatory for companies with listed debt or equity that arent using IAS. In addition, the tax statute can require consideration of the application of generally accepted accounting practice to companies that arent resident in the UK (for example, Controlled Foreign Companies). Tax would typically follow the accounting in this case. Reviewed: 28 Oct 2021 Errors that arent considered fundamental are accounted for in the period they are identified. Section 878 contains provisions to ensure that where all or part of the difference is brought into account under other sections of Part 8 that part isnt brought into account again. Hence the nature of the item should be considered in determining its treatment. For further details visit icaew.com/tas. For tax purposes grants which meet revenue expenditure, such as interest payable, are normally trading receipts, and this will continue where Section 24 of FRS 102 applies. For example for entities preparing their accounts at 31 December 2015 the transition date will be 1 January 2014. A company qualifies for the small companys regime (SCR) and Section 1A of FRS 102 if it fulfils at least two of the three qualifying conditions listed below (note certain entities are excluded from applying SCR and S.1A even if the below thresholds are met see the FRS 102 S.1A quick guide in the link below for details of those entities which are excluded): Yes, Section 35(10)(u)(v) of FRS 102 provides two additional exemptions for entities applying S.1A those being the ability to make a transition adjustment at the start of the current period (ordinarily this adjustment would need to be recognised at the date of transition and at the end of the comparative year) where there are: The disclosure requirements in Section 1A are a mirror of the Company Law disclosures which were included in law by way of Statutory Instrument 2015/980. Under both Section 12 of FRS 102 and the IAS 39 option, hedge accounting is only permitted where certain criterion are met. Companies will continue to apply all the measurement and recognition criteria under FRS 102 Sections 2 to 35 of FRS 102. Under both approaches, its necessary to consider the interaction with the requirements of company law as regards the amount of share premium to be recorded and the requirements as regards realised profits[footnote 5]. In terms of recognition and measurement of amounts in the financial statements, the provisions of full FRS 102 apply. In addition, where the respective recognition criteria are met, Section 23 also requires that revenue is recognised at the fair value of the consideration received or receivable. Under Section 28 of, recognises all assets and liabilities whose recognition is required by, doesnt recognise assets and liabilities if, reclassifies assets, liabilities and components of equity to ensure presentation is consistent with, measures all recognised assets and liabilities in accordance with, a loan relationship which comes to a natural end in the accounting period that the transition takes place because its repaid or redeemed on the date which is the latest date on which, under its terms, it falls to be repaid or redeemed, an embedded derivative that is bifurcated out of a loan asset or liability described in the first bullet, a derivative contract which hedges a loan asset or liability described in the first bullet. The Companies Act provides that current assets (such as cash and trade debtors) are recognised at purchase price/cost while the accruals concept is applied in determining, for example, the recognition and measurement of interest income in lenders. This is likely to mean that the transitional adjustment will be brought into account in full on transition (ie subject to the normal rules). No because hopefully the payments were made under normal market conditions. In most cases such amounts will be brought into account for tax. The financial statements are prepared in sterling, which is the functional currency of the company. Disclosure of holding of own shares or shares in holding company detailing amount and nominal value by class and amount of profits restricted as a result to include the % of shares held to total shares in issue (Section 320 CA 2014). These specific issues are explained below, but are intended to ensure that the correct amounts are brought into account overall for loan relationships and derivative contracts. Where it does so, the property is initially recognised at the lower of its fair value and the present value of the minimum lease payments. What is different when compared to FRSSE (old Small Companies Regime)/full FRS 102? The rules in FRS 102 for deciding whether a financial instrument is basic or other can be complex to apply in practice. In 2004 and 2005, the Government considered various representations about the impact of the transitional rules when a company moves from Old UK GAAP to either IAS or FRS 26. For lessors, FRS 102 Section 20 requires use of the net investment method for finance leases, whilst SSAP 21 requires the net cash investment method. It is most likely to be applied by small, medium-sized and large private companies. On transition FRS 102 section 35 requires that the balance sheet presented in respect of the accounting transition date: The transition date, for accounting purposes, is the first day of the earliest accounting period presented in the accounts. It remains the responsibility of the entity or individual to ensure that it prepares accounts in accordance with relevant GAAP and submits a self assessment in line with UK tax law. @R`JMqR-`BQF}%srY"aM(]iq'D It may be that when these factors are taken into account this will result in a different assessment of the companys functional currency. Consolidated accounts/seperate financial statements, investments in associates and joint ventures, Accounting policies, estimates and errors, Check benefits and financial support you can get, Find out about the Energy Bills Support Scheme, Accounting standards: the UK tax implications of new UK GAAP, Summary of the changes to the accounting standards, PART A Comparison between Old UK GAAP and FRS 102, PART B - Transitional adjustments (Old UK GAAP to FRS 102), nationalarchives.gov.uk/doc/open-government-licence/version/3, Corporation Tax: Disregard Regulations for derivative contracts, Statement of total recognised gains and losses, Statement of comprehensive income (sometimes referred to a statement of other comprehensive income), Reconciliation of movements in shareholders funds, Part A of this paper provides a comparison of the accounting and tax differences that arise between Old UK, Part B of this paper provides a summary of the key accounting and tax considerations that arise on transition from Old UK, additional commentary in relation to non-interest bearing loans, updated commentary on the application of the Disregard Regulations and Change of Accounting Practice Regulations, reflecting the changes made to these statutory instruments in December 2014, accounting commentary updated to reflect the amendments to, where applicable it has been updated for any commentary specific to section 1A of, proposed changes to the tax rules, for example changes to the loan relationship and derivative contract rules and changes to the intangibles legislation included in Finance (No.2) Act 2015, Micro-entities: companies that meet the eligibility criteria may prepare and file abridged accounts, with effect for periods commencing on or after 1 January 2016 these requirements are contained in, assets and liabilities at the accounting transition date will be identified, recognised and measured in line with the requirements of the new standards, thereafter profits and losses will be recognised in accordance with the new standards - these may differ from those profits and losses that would have been reported had Old UK, UK Generally accepted accountancy practice generally accepted accountancy practice in relation to accounts of UK companies (other than, a single statement of comprehensive income, in which case the statement presents all items of income and expense recognised in the period, 2 statements; an income statement and a separate statement of comprehensive income, application of Section 11 and Section 12 of, application of the recognition and measurement criteria of, all derivatives (including interest rate swaps, a forward commitment to purchase a commodity that is capable of being cash-settled, and options and forward contracts), loans that arent plain vanilla debt where, for example, the amount repayable can vary or where non-standard interest rates are used, investments in convertible debt where the return to the holder can vary with the price of the issuers equity shares rather than just with market interest rates, assets and liabilities held for trading purposes or speculatively, assets and liabilities designated at the outset by the company as at fair value through profit and loss, the tax treatment of derivatives is explained at, as noted above, financial instruments are required to be fair valued under Section 12 for all but basic instruments - loans previously recognised on an amortised cost basis may therefore be measured at fair value in accordance with Section 12, as noted above, Sections 11 and 12 dont permit the bifurcation of embedded derivatives (although the issuer of compound instruments will still separate out the equity component under Section 22) - for example the holder of a hybrid financial instrument is required under, Section 17 requires that residual values are based on current prices rather than historic prices, because of the difference in the definition of an intangible asset an acquisition under, there is a change in the measurement of the consideration given where that consideration is contingent, the look back period in which provisional fair values can be amended is different (, a change in step acquisitions in some circumstances, a grant that doesnt impose specified future performance-related conditions on the recipient is recognised in income when the grant proceeds are received or receivable, a grant that imposes specified future performance-related conditions on the recipient is recognised in income only when the performance-related conditions are met, grants received before the revenue recognition criteria are satisfied are recognised as a liability, it removes the multi employer exemption on defined benefit schemes such that the scheme position is reported in the solus accounts of the entity contractually or legally responsible for the plan, the calculation of the net interest on defined benefit schemes is different.

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