As well as micro-entity (FRS 105) and small company (FRS 102 Section 1A) accounts, firms in the beta can prepare a small company’s accounts under full FRS 102: the same Companies Act formats, without the Section 1A disclosure exemptions. This suits a small company that chooses fuller disclosure, for example for a lender or a group, and is the end of the engine that becomes the norm as Companies House moves to software-only filing with the profit and loss account always filed.
Choosing full FRS 102
Pick Full FRS 102 as the Accounts Type on the Period Overview (Accounts Type → Edit), or as the default for a client or for your firm. It only appears for firms in the beta.
Switching between FRS 102 Section 1A and full FRS 102 keeps everything: the trial balance, journals, notes, accounting policies and working paper answers. Full FRS 102 uses the same report headings as Section 1A, so no figure moves. Switching back to Section 1A only drops the notes that full FRS 102 adds.
What full FRS 102 adds
- Statement of changes in equity — always included (optional under Section 1A).
- Statement of cash flows — drawn up from the trial balance by the indirect method: profit for the year adjusted for tax, interest, depreciation and the movements in stock, debtors, creditors and provisions; then tax paid, investing and financing cash flows, down to the movement in cash at bank and in hand less overdrafts. It always reconciles to the balance sheet cash when the trial balance balances. The comparative column needs the previous year’s accounts on file with their own comparatives. A subsidiary whose parent’s public consolidated accounts include a cash flow statement can leave it out: tick Leave out the statement of cash flows (qualifying entity) in View Accounts → Pages.
- Staff costs note — wages and salaries, social security and pension costs, read from the trial balance.
- Directors’ remuneration note — remuneration and pension contributions from the trial balance, the highest paid director when total remuneration is £200,000 or more, and key management personnel compensation. These rows move out of the Operating profit note.
- Factors affecting the tax charge — the reconciliation of profit before tax at the standard rate to the tax charge. Enter the rate and each reconciling item from the Corporation Tax computation; whatever is left prints as “Other”.
- Reserves — the nature and purpose of each reserve, with ready-made wording.
- Financial instruments — carrying amounts of financial assets and liabilities at amortised cost and at fair value.
The accounts and policies wording says “FRS 102” in place of “FRS 102 Section 1A” throughout, and the iXBRL is tagged with the full FRS 102 accounting standard.
Filing
The accounts file to Companies House and attach to the CT600 in the usual way. Filleted accounts still leave out the profit and loss account, the statement of changes in equity and the cash flow statement. Audited accounts, and medium-sized and large companies with their strategic report, are now in the beta too: see Audited accounts (beta) and The strategic report.
See also: choosing your accounts framework.