Accounting Standards

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lmiddleham
lmiddleham Registered Posts: 71 Regular contributor ⭐
in General accounting discussion
Hi

In the UK unlisted companies can prepare their accounts either UK GAAP or IFRS and PLC companies have to use IFRS.

Is there any specific set of standards for sole traders/partnerships in this country?

Thanks

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  • Steve Collings
    Steve Collings Registered Posts: 997 Epic contributor 🐘
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    Generally speaking, sole traders/partnerships prepare accounts for the computation of tax (as well as clearly wanting to know their profit/loss). HMRC requires accounts that form the basis of tax computations are prepared to GAAP, which in the UK is UK GAAP/IFRS.

    Just because they are distinct legal forms doesn't preclude them from complying with UK GAAP.

    Kind regards
    Steve
  • lmiddleham
    lmiddleham Registered Posts: 71 Regular contributor ⭐
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    Thanks Steve

    I've only ever worked & studied using IFRS so I'm familiar with them. I also have a great link to summaries of all their standards (http://www.iasb.org/IFRSs/IFRS.htm if anyone is interested, subscription is free)

    Is there much difference between UK GAAP & IFRS or am I fine to just go ahead and use IFRS? To be honest it's a pretty simple business so I doubt that any major differences would occur between the 2.

    A summary of UK GAAP standards would be great if anyone has one.
  • Hasan.Ahmet
    Hasan.Ahmet Registered Posts: 87 Regular contributor ⭐
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    There is GAAP and there is FRSs. GAAP contains FRSs
    FRS is what we need to look at for UK equivalent of IFRS.
    UK GAAP is what we need to look at for UK equivalent of International GAAP.
    GAAPs contains both the principles and the reporting standards (SSAPs in the UK) before
    being replaced by FRSs.
    SSAPs can be found on the ASB's website. Not all have been replaced by FRS.

    Hope makes sense

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