How to create a set of FRS 105 Accounts

Introduction

This topic explains how to create a set of accounts applying FRS 105 the micro entities regime.

• It does not show all of the potential adjusting journals or disclosures.

FRS 105 is mandatory for a micro-entity applying the micro-entities regime for periods beginning on or after 01/01/2016, with the option to early adopt.

For further details regarding FRS 105 please visit the following website: https://www.frc.org.uk/  

Click the links below to jump to a particular section:

Step 1 – Entering the date the accounting standards apply

Step 2 – Creating a FRS 105 Posting Entry

Step 3 – Data screens

Step 4 – Generating a set of Accounts

Step 1 – Entering the date the accounting standards apply

1. From the Accounts Production quick launch toolbar click View Client. Alternatively from the main toolbar click Client | View

The following screen displays.

2. Click A/P Dates.

3. In the FRS 105 (The Financial Reporting Standard applicable in the UK and Republic of Ireland) field enter the date the accounting standards apply, for example, 01/01/2016. The date entered will determine the first year of adoption. This must be identified for the appropriate disclosures to be included within the accounts.

4. Click OK.

The following screen displays.

5. Click Save and Close.

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Step 2 – Creating a FRS 105 Posting Entry

1. From the Accounts Production main toolbar click Posting | New

The following screen displays.

2. Click Add.

The following screen displays.

3. Complete the New year-end date field, for example, 31/12/2016 and click OK.

4. Highlight the date entered in step 3, for example, 31/12/2016 and click OK.

The following screen displays.

The Previous account period end date will be completed automatically with the previous date to the selected Account period end. If this is the incorrect date click the magnifying glass beside the Previous account period end date field highlight the relevant date and click OK.

5. Complete the Description field.

6. From the Accounting Standard field confirm FRS105 is selected.

7. From the drop-down menu beside Terminology click on one of the following options:

Companies Act – If this option is selected, the financial statements will use Companies Act terminology that is, Turnover, Stocks.

FRS - If this option is selected, the financial statements will use FRS terminology that is, Revenue, Inventories.

The Companies Act option will be selected by default.

8. Click OK.

The following screen displays.

9. Click Yes for IRIS to automatically create the FRS duplicate posting entry for the comparative year and copy in the trial balance from your existing UK GAAP posting entry.

The following screen displays.

10. Click OK.

The following screen displays.

In order to create the comparative post file you will be required to select a document type for the imported trial balance.

• You may wish to create a new document type to clearly categories these imported entries.

11. Highlight the desired Document type and click Select.

The comparative year posting screen displays.

12. Make any necessary adjustments and click Close when complete.

13. Once adjustments have been made select Posting | Select to open the current years posting entry, for example, 31/12/2016.

The following screen displays.

14. Enter a session identifier then click the magnifying glass next to the Document type field.

The following screen displays.

15. Highlight the relevant Document type and click Select.

16. Click OK.

The following screen displays.

• Postings will be displayed where document type 1 has been selected to bring forward opening balances.

This is where you make all your postings.

17. In the Amount field enter the amount.

18. Click the magnifying glass next to the Account field. Alternatively, manually enter the account code then go to step 21.
    
    

The following screen displays.

19. Click on the relevant account code from the list.

20. Click OK.

The Posting screen displays.

21. If further postings are required repeat steps 18-21. If no further postings are required, click Close to exit the posting screen.

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Step 3 – Data screens

1. From the quick launch toolbar click Data Screens. Alternatively from the main toolbar select Edit | Data screens

When opening the data screens for the transition period the data screen will display as follows:

• The data screen options contain both UK and UK (FRS 105) folders. This is because of the duplicate posting period and the two different standards that are applied to it. The First Year Adjustment section will always be present within the data screens to allow clients to move between IFRS, FRS101, FRS102 and FRS 105 at any time.

When opening the data screens for the first year of FRS 105, the data screen will display.

The data screen option only displays the UK (FRS 105) folder.

New FRS data screen

Within the FRS 105 – Options data screen you can make further presentational choices including the report title for income and expenses and some further terminology preference settings.

• Early Adoption – If you wish to early adopt FRS 105 then you simply follow the instructions above for your 2015 period.

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Step 4 – Generating a set of Accounts

1. From the Accounts Production Quick Launch toolbar, click Annual Report. Alternatively from the main toolbar click Reports | Annual

2. Click one of the following options:

Standard – to generate a set of accounts to the Printer, PDF, Word Processor, Screen or upload to IRIS OpenSpace.

Interactive – to generate an interactive report.

For further information on Interactive Reporting click here.

When generating a set of accounts, where the first year of adoption of FRS 105 is identified, the following screen displays.

3. Ensure the relevant Report/Document is entered.

4. Ensure the correct Posting entry fields are selected.

5. Click OK.

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