First time adoption of IFRS

By Tolley in association with Nick Watson
First time adoption of IFRS

The following Corporation Tax guidance note by Tolley in association with Nick Watson provides comprehensive and up to date tax information covering:

  • First time adoption of IFRS
  • Background ― developments in UK GAAP and IFRS
  • Comparative disclosures when converting to IFRS
  • First time adoption of IFRS
  • Specific issues on adoption of IFRS

EU Listed Groups have been required to apply IFRS for their consolidated accounts since 2005 and UK company law has allowed any UK company the option of applying IFRS if they choose to do so.

In practice, relatively few companies have adopted IFRS because there has been little practical benefit in doing so for small private companies. For the subsidiaries of larger groups there have been concerns around potential tax implications of conversion and also a reduction in distributable reserves under IFRS.

Background ― developments in UK GAAP and IFRS

In November 2012, the Accounting Council issued FRS 100 (Application of Financial Reporting Standards) and FRS 101 (Reduced Disclosure Framework – Disclosure exemptions from EU-adopted IFRS) for qualifying entities as final standards. FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland was issued in 2013.

These standards replaced previous UK GAAP with effect for accounting periods beginning on or after 1 January

More on Deferred tax and tax disclosures under IFRS: