Understanding FRS 3

Article Abstract:

The UK Accounting Standards Board recently introduced Financial Reporting Standard (FRS) No. 3, 'Reporting Financial Performance,' to steer financial statement users away from their traditional focus on the reported earnings per share. The new standard requires closer examination of the profit and loss account, virtual scrapping of extraordinary items and the simultaneous revision of Statement of Standard Accounting Practice No. 3 regarding earnings per share, and more stringent requirements for the computation and reporting of exception items. In addition, FRS 3 requires a new primary statement, a new note demonstrating what profit would have been if strict historical cost accounting had been used, and a reconciliation of the opening and closing totals of shareholders' funds.

---

Half-time results on the scoreboard: the Accounting Standards Board tackles the reporting of interim results

Article Abstract:

The Accounting Standards Board (ASB) provides guidance on the measurement principles to be applied in the preparation and content of interim reports in its recently issued exposure draft of a 'best practice' statement on 'Interim Reports.' The document identifies the ASB's recommended elements of interim reports, including a summarized profit-and-loss account, a summarized balance sheet, a summarized cash flow statement, a management commentary and a statement of total recognized gains and losses. The proposals will little impact on many listed companies since they already comply with many of the draft's requirements. However, they will be helpful to companies that want to improve their interim reporting. Adoption of the proposals will be voluntary.

---

Financial Reporting Standard 10: Goodwill and Intangible Assets

Article Abstract:

The Accounting Standards Board has released Financial Reporting Standard 10 governing the accounting treatments for goodwill and intangible assets. 'Goodwill and Intangible Assets' seeks to ensure that capitalized goodwill and intangible assets are charged in the profit and loss account in the periods in which they are used up. It requires the reporting entity to disclose sufficient information in their financial statements to allow users to assess the impact of goodwill and intangible assets on the financial position of the company. The standard also requires companies to capitalize purchased goodwill and intangible assets as assets while allowing the revaluation of intangible assets by reference to readily ascertainable market values.

Accounting Methods, Reporting & Disclosure, Accounting and auditing, Intangible property, Intangible assets, Goodwill (Business)

Similar abstracts:

• Abstracts: Understanding and evaluating manual handling injuries: NIOSH research studies
• Abstracts: Pitching consumers through the business press. Mining a motherlode of information. BUYING INFLUENCERS TURN TO MAINSTREAM PUBLICATIONS: `PC MAGAZINE' RETAINS LEAD OVER `PC WORLD' IN CIMS RANKING
• Abstracts: Study: marketers underestimating trade ad leads. Recognizing the best of b-to-b work - and the challenges it presents
• Abstracts: Insurance mergers are on the cards. Choosing a direction. Life insurers in the doldrums
• Abstracts: Leeds and Bradford: City fathers issue warning. Inward investment. Leeds and Bradford: fighting fit

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.