Does anybody else feel like this

Re:Does anybody else feel like this

And the really good news is that according to our CPD Accounting Standards Provider, there is a great deal more to come through the pipeline as it has been delayed for some time ........... Yes, I sat through a 3 hour presentation on ASB developments on the said subject. And I am lucky enough to have been examined at AAT Technician on the New Standards DFS in June 2006, others are less fortunate. And we were also informed it is a new criminal offence for reckless auditing, hope our jails have enough spare cells available or maybe it will be community service sweeping the streets.

Re:Does anybody else feel like this

Hi Dean,

I've been on a CPD course run through Mercia but our speaker was a guy and he said exactly the same!!

The problem I'm finding is just getting the time to keep on top of them. I'm off work next week but am taking a BOX full of literature, bulletins, press releases and tax info to catch up on as in April I am out on site for the whole of the month.

I was asked by one of our partners here about the implementation of IFRSs in SMEs the other week. I had to to be honest and say it's bad enough trying to keep up with ISA's and the changes in UK standards before I'll even think about looking at how the international standards will affect our clients. I keep looking at the posts on accounting web re international standards and I don't think the international FRSSE is going down very well with practitioners.

I think in time not even the ASB will know where they are up to!

Steve

For those who are interested

If anyone feels the need for an accounting standards update overview, I can provide the PDF lengthy version and the powerpoint summary version.

Re:Does anybody else feel like this

I wouldn't mind a look at the powerpoint summary if that's ok?

Regards

Dean

Re:Does anybody else feel like this

peugeot wrote:

Hi Dean,

I've been on a CPD course run through Mercia but our speaker was a guy and he said exactly the same!!

The problem I'm finding is just getting the time to keep on top of them. I'm off work next week but am taking a BOX full of literature, bulletins, press releases and tax info to catch up on as in April I am out on site for the whole of the month.

I was asked by one of our partners here about the implementation of IFRSs in SMEs the other week. I had to to be honest and say it's bad enough trying to keep up with ISA's and the changes in UK standards before I'll even think about looking at how the international standards will affect our clients. I keep looking at the posts on accounting web re international standards and I don't think the international FRSSE is going down very well with practitioners.

I think in time not even the ASB will know where they are up to!

Steve

I was going say if it's bad now surely it will be a nightmare when international standards are slapped in? Sorry if that's depressing.

I don't really know the old stuff (thinking about it don't know much about the new stuff either) but I was lead to believe that there are some significant differences in areas such as leases & revenue recognition.

Re:Does anybody else feel like this

Just to revert back to Lincs point re leases and revenue recognition.

There have been major changes to FRS 5 - Reporting the Substance of Transactions by virtue of application note G or UITF 40. The UITF states that revenue should be recognised when there is a right to receive economic benefit. Previously work in progress would basically sit on the balance sheet as a current asset until such time it is wholly completed and then subsequently invoiced. The UITF states you have to determine, using best practice estimation techniques, the point at which uninvoiced work gives the seller the right to receive payment/recognise income. This standard has created a lot of unrest within the profession as it means some seller's will have an increased tax charge based on the UITF though the Revenue have introduced spreading provisions which allows the additional tax to be spread over a period of time. Service companies (e.g. solicitors, accountants etc) will be affected by this as they have to recognise a "critical event" i.e. a point in time when the work they have done for a client becomes payable. For example, a firm of accountants would not normally have a large WIP figure on 31 January 2007 as all the tax returns would (or should) be completed. Those practices with a large WIP balance in their balance sheet on 31.1.07 would attract the attention of HM Inspector of Taxes. I am going to prepare an article for the AAT magazine which will go into this in more depth.

In terms of leases preparers of financial statements/directors have to look at the substance of the lease to determine the actual ownership of an asset to prevent off balance sheet financing. The standard goes on to say that the entity must report the commercial effect of a transaction recognising assets, liabilities, gains and losses and not just report the legal form of the transaction.

Kind regards
Steve

Re:Does anybody else feel like this

Hi Dean,

I'm not necessarily going to go against what the AAT have said but I've had countless numbers of practice notes, bulletins and articles which over-complicate the whole aspect of UITF 40. One thing I am trying to strive towards is simplifying the interpretation of what certain standards state in a more using a more "user-friendly" approach.

I'm not sure about you, but I cringe when I see an amendment to an FRS because it goes on and on and on and on for example FRS 17 - that standard is pretty straight forward, though if you look at how the accounting standards board have worded it they just over-complicated the whole FRS.

Kind regards
Steve

p.s. our sister practice has 31.01 as its year end!