Introduction to new UK GAAP

Produced by Tolley in association with

Corporation Tax

Guidance

Article Summary

This guidance note provides an introduction to the new UK GAAP accounting framework that has applied to UK companies' financial statements since 1 January 2015. It explains the background to the introduction of FRS 100, FRS 101, FRS 102, and FRS 105 which together comprise the new UK GAAP, replacing the previous SSAPs and FRSs. As taxable profits are based on accounting profit, practitioners need to understand the new standards, particularly FRS 102 which will apply to most companies. Key sections of FRS 102 are highlighted, including those relating to financial instruments, intangibles, leases, and deferred tax. The note also outlines the main differences between FRS 101 and FRS 102 and factors to consider when choosing between them. Overall, this provides helpful context for tax practitioners on the new UK GAAP framework and why it is important to be familiar with the changes.

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Malcolm Greenbaum

Director and Principal Trainer at Greenbaum Training and Consultancy Limited

Malcolm is a UK Chartered Accountant and Chartered Tax Advisor winning the John Wood Medal in the November 1995 CIOT sitting for the best paper on business taxation. He was previously Director of Finance and Taxation Programmes at BPP Professional Education and has delivered IFRS, US GAAP, UK Tax and VAT training (at all levels from an introduction to the complexities of IAS 39) to a multitude of organisations world-wide since 1992. Malcolm has particular experience in delivering bespoke training programmes to multi-nationals in the financial services, transport and energy sectors as well as delivering UK tax and VAT update programmes to accounting and law firms. He is passionate about training and his enthusiasm ensures that the participants enjoy the learning experience whilst gaining knowledge through their engagement in the sessions and through encouraging them to ask questions and discuss practical issues they may have. Malcolm also provides consultancy services to companies and accounting firms, including provision of VAT advice, reviewing accounting policy manuals and advising on accounting treatments of various transactions. In his spare time, Malcolm enjoys flying having gained a Private Pilot's Licence in 2014.

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