Solent: Grant Thornton predicts change for Hampshire businesses

Businessmen and women from across Hampshire came together last week to find out about the most significant changes to UK financial reporting in recent years. Business and financial adviser Grant Thornton held a special event to explain the changes to businesses from across the Solent region.

The introduction of FRS 102 will affect all businesses currently preparing accounts under UK GAAP. Grant Thornton warns that the effects will depend on individual circumstances, therefore it is important that businesses determine what the impact could be for them.

Speaking at the event, which was held at St Mary’s Stadium, Southampton, partner Norman Armstrong said: “The new standard which will replace all existing FRSs and SSAPs will have an impact on financial reporting including areas such as covenant compliance, profit-based remuneration schemes and distributable profits. Although the introduction date may seem a long way off, the starting point for applying FRS 102 will be to restate the opening balance sheet at the beginning of the comparative period for the first accounts prepared under the new guidelines.

“The standard will take effect from January 1, 2015, and therefore for a December year end the ‘transition date’ would be January 1, 2014, so it is vital that businesses understand and fully prepare for FRS 102 now.”