2170692 - Implementation of FRS 102 - UK

SAP Knowledge Base Article - Public

2170692 - Implementation of FRS 102 - UK

Symptom

According to legal requirements, the FRS 102 financial reporting standard applicable in the UK and Republic of Ireland came into effect on January 1, 2015. Therefore, FRS 102 is effective for accounting periods commencing on or after January 1, 2015. With FRS 102, the titles of the required financial statements are specified, however, other titles can still be used and companies can retain existing terminology, for example, to keep the title “Balance Sheet” instead of changing it to "Statement of Financial Position".

For FRS 102, the following applies in your SAP Business ByDesign solution:

  • The balance sheet, income statement, and cash flow statement provide the basis for preparing the financial statements, in accordance with FRS 102. Existing templates have not been updated.
  • There are no specific reports provided for the Statement of Comprehensive Income and Statement of Income and Retained Earnings due to the nature of the underlying transactions. This information can instead be prepared from data already provided by your solution. 

 

Resolution

In the SAP Business ByDesign solution, you can use data provided in the balance sheet, income statement, and cash flow statement to prepare the required financial statements in accordance with FRS 102.

You can also prepare the Statement of Comprehensive Income and Statement of Income and Retained Earnings using relevant data already provided by your Business ByDesign solution. 

Note:

  • The Statement of Comprehensive Income is a combination of the profit and loss account and the Statement of Total Recognized Gains and Losses.

  • The Statement of Income and Retained Earnings combines data from the Income Statement, Statement of Comprehensive Income, and the Statement of Changes in Equity into one statement. However, this is only possible if the only equity changes in the given year are for profit and loss, payment of dividends, correction of material errors for prior periods, and the effects of changes in accounting policy.

Keywords

KBA , SRD-FIN-GL , General Ledger , Product Enhancement

Product

SAP BUSINESS BYDESIGN 1708