“Going Naked in Public …..!”Oct. 10, 2015, 10:32am
OK, so ‘going naked’ is a bit dramatic, but a significant increase in public disclosure is a potential consequence of the introduction of FRS102 – Financial Reporting Standard 102 (catchy title, hey?!)
Many small companies have historically filed abbreviated accounts at Companies House which, really do not tell you much. A Balance Sheet, a few accounting policies and perhaps one or two disclosure notes has been the norm.
For accounting periods commencing on 1 January 2016 (or 1 January 2015 if Directors so wish) the introduction of FRS 102 takes affect. The long accepted concept of filing abbreviated financial statements at Companies House is being being swept away, with a requirement to file significantly more information in the public domain.
Small companies can adopt the ‘reduced disclosure’ provisions of FRS 102 , but the full financial statements will be filed at Companies House and the only mitigation to this being that the company may choose not to include the Directors report and Profit and Loss Account.
So almost (fully) naked…
Is this OK?
Historically, certain companies have elected to disclose more information than required, for say commercial reasons or perhaps just vanity. But to a significant number of owner managed companies, keeping the business results private is a key consideration.
Public disclosure of data when for legitimate commercial reasons you really don’t want to, does become more difficult.
An opportunity exists to review the application of FRS 102 now and consider the presentation of your financial statements.
We have significant experience of the early adoption of FRS102 and are actively working with our clients on the run up to the implementation date.
So, if you want to keep your ‘clothes on’ as it were, or just ensure you are ready when the time arrives, then give us a call.