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Small entities under new UK GAAP

Section 1A of the accounting standard FRS 102 covers small entities. On this page you can access a range of articles, books and online resources providing useful links to the standard, summaries, guidance and news of recent developments.

General guidance and information on the accounting standard is available from our FRS 102 page.

Small entities were dealt with in FRSSE under old UK GAAP. This standard has been superseded by FRS 102.

What's on this page?

  • Full-text standard
  • Model accounts
  • Guidance and support from ICAEW
  • eBooks
  • Online articles
  • Articles and books from the Library

Contact the Library

Expert help for your enquiries and research.

E  library@icaew.com

T  +44 (0)20 7920 8620

Full-text standard

FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland
As issued by the Financial Reporting Council (FRC) in September 2015. This updated edition incorporates amendments issued in September 2014, February 2015, March 2015 and July 2015. Small entities are covered in Section 1A.

More information and links to previous versions and amendments are available on our main FRS 102 page.

Model accounts

Model accounts and disclosure checklists for new UK GAAP
The ICAEW Library can provide model accounts and disclosure checklists for FRS 101, FRS 102, FRS 102 Section 1A, FRS 103 and FRS 105. The examples and checklists cover a broad range of entities, including small companies, charities, groups, LLPs and micro-companies.

ICAEW guidance and support

The new UK GAAP
ICAEW's financial reporting portal offering practical resources on the new regime, including guidance factsheets and FAQs covering key topics.

Abridged accounts for small companies
Technical helpsheet addressing some common questions around the new option to prepare abridged accounts for small companies.

FRS 102: Small company requirements under Section 1A
Technical helpsheet addressing the changes to accounting standards for small entities introduced by FRS 102.

Ask ICAEW Technical Advisory Service

Get an opinion from the experts. Our experienced technical advisors can help you with your new UK GAAP questions and offer practical advice. Call the advisory helpline on +44 (0)1908 248 250.

Questions we've dealt with recently include:

  • What is happening to the FRSSE? Can I still use it?
  • How do I know if my financial instruments are basic or other under FRS 102?
  • How does FRS 102 impact charities?

Find out more about the Technical and ethics advisory helpline, including our opening hours.

Financial Reporting Faculty

Financial Reporting Faculty
The faculty offers assistance and support in IFRS, UK GAAP and other aspects of business reporting. It offers technical briefings and factsheets, IFRS and UK GAAP standards-trackers, plus practical advice from industry experts and working accountants.

Filing options under the new small companies regime
This FAQ explains the options available to small companies when they file their accounts at Companies House, particularly addressing questions about ‘filleted’ accounts. Published in September 2016.

eBooks

The Library provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Interpretation and application of UK GAAP for accounting periods commencing on or after 1 January 2015
Steve Collings (2015)
A detailed, practical guide to applying UK GAAP with specific sections and examples covering:

  • Financial reporting for smaller companies.

UK GAAP 2017: Application of FRS 100–104 in the UK
EY (2017)
This guide has been fully updated to reflect the application of the new accounting standard in practice. It focuses on each area of the financial statement in detail and explains how they are treated by FRS 102, with illustrative examples. The chapter on small entities covers:

  • Summary of Section 1A and related Companies Act 2006 requirements
  • Scope of small entities regime
  • Accounting requirements
  • Presentation requirements in Section 3 that still apply where Section 1A is applied
  • Complete set of financial statements
  • Statement of financial position
  • Income statement (or profit and loss account)
  • Information to be presented in the notes to the financial statements
  • Small companies and LLPs – statutory exemptions.

Online articles

The Library provides access to leading business, finance and management journals. These journals are available to logged-in ICAEW members, ACA students and other entitled users subject to suppliers' terms of use.

Articles are available to logged-in ICAEW members, ACA students and other entitled users.

Articles from other sources

FRS 102: Related party transactions for small companies
AccountingWEB, May 2018
Article explaining key points for practitioners to consider when disclosing related party transactions for small companies. It covers the requirements of FRS 102 Section 1A, directors' remuneration, directors' loans, and small companies which are members of a group.

Small business accounts: Filleted accounts - part 9
CCH Daily, August 2017
This article offers tips and advice on how to prepare filleted accounts, an exemption which allows eligible companies to omit the directors' report and the profit and loss account from the filed accounts. Available online to Accountancy Daily subscribers or in print from the Library.

Companies House accounts filing – tips and advice
CCH Daily, August 2017
This article highlights the main issues for small entities to consider when filing accounts under FRS 102 Section 1A. It covers company size classifications, the impact of changing company size requirements, preparation and filing options for small companies and key filing problems under new UK GAAP. Available online to Accountancy Daily subscribers or in print from the Library.

Small business accounts: Disclosures and Section 1A – part 7
CCH Daily, June 2017
This article discusses how to deal with disclosure requirements and the use of Section 1A, the difficulties over applying guidelines on true and fair in practice and the importance of providing adequate information about material balances and transactions. Available online to Accountancy Daily subscribers or in print from the Library.

Small business accounts: Deferred tax – part 6
CCH Daily, May 2017
Article examines some key areas where small entities may encounter deferred tax challenges, including deferred tax assets, revalued property, share options, and micro entities. Available online to Accountancy Daily subscribers or in print from the Library.

Small business accounts: Investment property – part 5
CCH Daily, April 2017
This article highlights key new UK GAAP changes for small businesses accounting for investment property and explains some of the challenges, including how investment property is defined, accounting requirements, assessing fair value, gains and losses, qualifying as a micro entity, FRS 105, and transitional exemption and depreciation. Available online to Accountancy Daily subscribers or in print from the Library.

Small business accounts: Financial instruments – part 4
CCH Daily, March 2017
The article looks at potential pitfalls when reporting and accounting for director’s loans, fixed asset investments and derivatives under new UK GAAP; it also offers advice for smaller businesses considering adopting FRS 105. Available online to Accountancy Daily subscribers or in print from the Library.

Small business accounts: Transition to new UK GAAP – part 3
CCH Daily, February 2017
Anne Cowley ACA provides useful tips and advice on the move to the new accounting rules for small business. Available online to Accountancy Daily subscribers or in print from the Library.

FRS 102: Small companies and updated tax guidance
AccountingWEB, January 2017
Steve Collings highlights the key changes likely to impact small companies adopting FRS 102.

Small business accounts: Company reporting under FRS 105
CCH Daily, December 2016
In readiness for application of FRS 105 accounting rules for micro businesses and FRS 102 Section 1A for small businesses, expert technical author Anne Cowley ACA will be looking at new UK GAAP through the eyes of a small company, providing clear analysis, essential tips and practical help on how to tackle the challenges ahead – from preparation right through to filing. Available online to Accountancy Daily subscribers or in print from the Library.

Abridged accounts under FRS 102: Essential reporting tips
CCH Daily, October 2016
For accounting periods beginning on or after 1 January 2016 (with earlier adoption permitted), small companies have a new option to prepare abridged accounts. Anne Cowley ACA, CCH senior technical writer, considers the options. Available online to Accountancy Daily subscribers or in print from the Library.

Articles and books in the Library collection

To find out how you can borrow books from the Library please see our guide to book loans. You can obtain copies of articles or extracts of books and reports by post, fax or email through our document supply service.

Can't find what you are looking for?

If you're having trouble finding the information you need, ask the Library & Information Service. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com.

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