New UK GAAP Generally Accepted Accounting Practice (New UK GAAP)
Since 1 January 2015, the new national accounting legislation in the United Kingdom, better known as New UK GAAP, has been in force. The accounting framework for these provisions is aimed at companies without official listing and comprises five rules ranging from FRS 100 to FRS 105.
- FRS 100 – Clarification on the application of financial reporting requirements: THE FRS 100 standard establishes the conceptual framework applicable to financial statements drawn up in accordance with the principles of accounting legislation, regulations and standards that apply in the United Kingdom and the Republic of Ireland.
- FRS 101 – Conceptual framework for financial statements with limited information: FRS 101 is a small balance sheet concept with which business groups can develop their financial statements according to international IFRS standards without the need to disclose the requirements of those standards.
- FRS 102 – Financial reporting standard for the United Kingdom and the Republic of Ireland: Standard 102 is the UK and Republic of Ireland financial reporting standard that replaces the old UK GAAP standards. It contains 250 pages and includes new accounting options.
- FRS 103 – Accounting principles for insurance contracts: FRS 103 contains the requirements that companies must meet to deliver insurance contracts.
- FRS 104 – Standard for the preparation of interim financial reports: this standard is based on international reporting rules known as IAS 34 and applies to companies that take their balance sheets in line with FRS 101 or FRS 102 standards as a basis for the creation of interim reports.
- FRS 105 – Standard for the preparation of financial reports for small businesses: the RS 105 refers to a version of the FRS 102 standard tailored to the requirements and needs of small businesses.
The Accounting Standards Board (ASB), a department of the Financial Reporting Council (FRC), is responsible for drafting the FRS.
IRFS
In the United Kingdom, publicly traded companies must take their balance sheets in accordance with the provisions of the International Financial Reporting Standards.
International accounting standards
To beyond national borders, work has been under way for years to achieve international harmonization in terms of commercial law, as mentioned above.
The objective is therefore to unify accounting regulations for the conduct of financial reports. Internationally relevant accounting standards include the IASB International Financial Reporting Standards (NIFF or IFRS), but also the generally accepted accounting principles of the United States (US GAAP)
Internationally Accepted Accounting Principles
IFRS
International Financial Reporting Standards (IFRS) are standards adopted by the International Accounting Standards Board (IASB) as NICs or International Accounting Standards for Companies. The objective of this legislation is the international harmonization of financial accounting principles.
The regulation consists of three parts:
- Conceptual framework: the conceptual scope of IFRS stands as the set of basic foundations of the regulation. It describes the fundamental objectives and assumptions of international guidelines, as well as qualitative requirements in financial statements with respect to IFRS. In addition, this conceptual framework also encompasses essential terms such as assets, liabilities, profits or expenses.
- Standards (IFRS/IAS): Balance sheet and evaluation requirements are raised in the form of individual standards. These include both IASB IFRS and International Accounting Standards (IASC) IAS (IASC).
- Interpretations: To unify the interpretation of international standards, the third part of this regulation contains official interpretations of standards published by the International Financial Reporting Standards Interpretations Committee (IFRIC), better known in Spanish as the Committee on the Interpretation of International Financial Reporting Standards (IFRS).
IFRS is implemented, in the event of conflict, the standards and interpretations of the International Financial Reporting Standards have a higher level of commitment than that of conceptual framework data, which alone cannot be considered a normative element.
Since 2005, all companies with official listings and based in Europe have been required to prepare the consolidated financial statements according to the IFRS.
US GAAP
The United States Generally Accepted Accounting Principles (US GAAP) are U.S. accounting standards issued by the Financial Accounting Standards Board (FASB). These are recognized by the Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants (AICPA) and thus acquire legal status.
THE US GAAP is also of great international significance, because U.S. exchanges require reporting under U.S. Securities and Exchange Commission regulations, i.e. SEC. Until 2007, foreign companies that wanted their capital to be in line with the U.S. market were also required to file financial statements under the US GAAP or to conduct a bank reconciliation in accordance with US standards. With the SEC’s acceptance of IRFS on December 21, 2007, this regulation has gone to the background.
How we can help your company
It is clear that external, qualified and accredited accountants and work experience in multinational environments need to be available. Professionals who master Spain’s own regulations as well as international regulations.
In addition, the ease of working with SPANISH BRANCH OFFICE without the need to hire workers, with all the burden that comes with it and the costs that they will probably incur, and that will certainly exceed our professional fees.
However, our company can select whether it chooses the route of hiring staff, the most suitable professionals for the position profile they require.
We have worked and worked with companies of all profiles, from microenterprises to companies with plants in different countries.
We are used to designing agile and effective information systems between parent and subsidiaries.
We know the problems of companies and their needs. We speak the same language, and we are where problems may arise. And we’re trustworthy.
It is clear that external, qualified and accredited accountants and work experience in multinational environments need to be available. Professionals who master Spain’s own regulations as well as international regulations.
In addition, the ease of working with SPANISH BRANCH OFFICE without the need to hire workers, with all the burden that comes with it and the costs that they will probably incur, and that will certainly exceed our professional fees.
However, our company can select whether it chooses the route of hiring staff, the most suitable professionals for the position profile they require.
We have worked and worked with companies of all profiles, from microenterprises to companies with plants in different countries. We are used to designing agile and effective information systems between parent and subsidiaries. We know the problems of companies and their needs. We speak the same language, and we are where problems may arise. And we’re trustworthy.
