Limited companies in the UK have a choice as to what regime to use to prepare their statutory accounts. For most unlisted companies,
this will be under the current UK Generally Accepted Accounting Principles (‘UK GAAP’), FRS 100-105. However, since the
transition to FRS 100-105, some companies are converting their accounts to International Financial Reporting Standards
(‘IFRS’) which are more closely aligned to the new UK GAAP than the old UK GAAP.
Although not a decision to be taken lightly, there are a number of reasons why our clients are taking this approach including:
- To enable a group to recognise acquired goodwill at fair value rather than having to amortise it over a finite period.
- To prepare for a future floatation or sale to an international buyer.
- To align group financial reporting in an international group.
- To assist with fund-raising, particularly from overseas investors.
ZZ Accountants is well-versed in helping our clients consider their reporting options and, where appropriate, our specialist team
can assist with converting to IFRS as well as ongoing IFRS reporting.