As we states earlier, the way in which financial accounts are
presented, are in the basic trial balance, trading profit and loss, and balance
sheet formats.
However certain procedures need to be followed in order for the
accounts to be legally acceptable in the UK.
These accounting practices come in the form of Statement of Standard
Accounting Practices (SSAP) and Financial Reporting Standards (FRS).
Both SSAP and FRS are rules which must be incorporated in both
the calculations and noted at the bottom of the financial statement data. SSAP is
the older standard which is being phased out by FRS. We shall now examine some
of the current standards in the table below.
| TYPE |
NO |
ISSUED |
TITLE |
DESCRIPTION |
| SSAP |
2 |
11/71 |
Disclosure |
Defined simple polices which
must be maintained in all accounting policies. Has been updated by FRS 18 |
| SSAP |
4 |
04/74 |
Government Grants |
Details on reporting grants in
financial statements. |
| SSAP |
5 |
04/74 |
VAT |
Reporting and calculation of
VAT payments. |
| SSAP |
9 |
05/75 |
Stocks |
Calculation of stock values. |
| SSAP |
12 |
12/77 |
Depreciation |
Outlines basic calculation of
depreciation. This has been replaced by FRS 15. |
| SSAP |
13 |
12/77 |
Research &
Development |
Deals with R&D, defined as
pure and applied research. |
| SSAP |
15 |
10/78 |
Deferred Tax |
Deals with Tax calculations.
Superseded by FRS 19. |
| SSAP |
17 |
08/80 |
Post Balance
Sheets |
Deals with disclosure of
adjustments. |
| SSAP |
19 |
11/81 |
Investment
Properties |
Property is to be shown on
balance sheets at current market value with no depreciation. |
| SSAP |
20 |
04/83 |
Foreign Currency |
Deals with foreign currency
transactions. |
| SSAP |
21 |
08/84 |
Leases & Hire
Purchase Contracts |
Deals with businesses and hire
purchase contracts. |
| SSAP |
24 |
05/88 |
Pension Costs |
Deals with
calculation and disclosure of pension data. To be superseded by FRS 17. |
| SSAP |
25 |
06/90 |
Segmental
Reporting |
Deals with
reporting accurate data for businesses operating in several regions. |
| FRS |
1 |
09/91 |
Cash Flow
Statements |
Deals with items to be
included in cash flow statements.
|
| FRS |
2 |
06/92 |
Subsidiary
Undertakings |
Deals with data calculations
between parent and subsidiary businesses. |
| FRS |
3 |
10/92 |
Financial
Performance |
Requires a business to
highlight important changes in business performance. |
| FRS |
4 |
12/93 |
Capital
Instruments |
Deals with how capital is
shown in accounts and how it is made up from, e.g shareholder equity. |
| FRS |
5 |
04/94 |
Substance of
Transactions |
Deals with 'off balance sheet'
financing in terms of assets which are used by a business, but does not
belong to them. |
| FRS |
6 |
09/94 |
Mergers & Acquisitions |
Deals with showing
transactions regarding mergers & acquisitions. |
| FRS |
7 |
09/94 |
Fair Values in
Acquisitions Accounting |
Deals with showing accurate
values in Acquisitions. |
| FRS |
8 |
10/95 |
Related Party Disclosures |
Deals with ensuring any data
that a business presents for a related party is shown accurately. |
| FRS |
9 |
11/97 |
Associates and
Joint Ventures |
Again proper disclosure of
business agreements. |
| FRS |
10 |
12/97 |
Goodwill and
Intangible Assets |
Deals with items which cannot
be properly calculated. |
| FRS |
11 |
07/98 |
Impairment of
Goodwill & Fixed Assets |
Further rules governing assets
and goodwill agreements. |
| FRS |
12 |
09/98 |
Provisions,
Contingent Liabilities, and Contingent Assets |
Deals with assets
and liabilities correctly. |
| FRS |
13 |
09/98 |
Derivates and
Other Financial Instruments |
Further Rules on
Disclosure. |
| FRS |
14 |
10/98 |
Earnings Per
Share |
Deals with calculating the
amount each share of a business has earned. |
| FRS |
15 |
02/99 |
Tangible Assets |
Sets out new procedures
dealing with assets. |
| FRS |
16 |
12/99 |
Deferred Tax |
Deals with tax calculations. |
| FRS |
17 |
11/00 |
Retirement
Benefits |
Deals with amended Pension
scheme calculations. |
| FRS |
18 |
12/00 |
Accounting
Policies |
Deals with applying new
standards in accounting. |
| FRS |
19 |
12/00 |
Deferred Tax |
Deals with new
guidelines for tax calculations. |
| FRSSE |
|
Companies Act
1985 |
|
Reporting standards for
companies with less than £2.8 Million turnovers. |
We would recommend visiting the web-sites listed in the
Accounting Links section to get more detailed information on the standard.