FRS 105 and COVID-19 Disclosures
In this video John and Mike discuss what disclosures are required for an FRS 105 setof financial statements in relation to Covid-19.
Next Tuesday, June 16, Mike will delve deeper into this topic at the Irish Accounting and Tax Summit.
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Transcript of Video – FRS 105 and COVID 19 Disclosures
This transcript was created using AI and may contain some mistakes.
Just asking have we a set of FRS 105 accounts that deal with COVID-19 disclosures and just as your going through it. It might be worth just touching on that. But I mean, my understanding of it is that from a COVID-19 point of view, there’ll be very little that will actually be affected on that on an FRS 105 set of financial statements from a post balance sheet event,
point of view. Uh, you’re not required to disclose any item. However, if you do choose to provide additional disclosures, you must comply with section 1A. So I suppose just as you’re going through, it might be worthwhile to kind of look at how that might be impacted by COVID-19. Yeah. Yeah. And I suppose one point that would make,
if you are auditing an FRS 105 requirement its in the slides their section 336, 5a, Does say like if there’s material uncertainty regarding going concern, uh, you’re required to pull that out. And I think Mike you’re obviously to come in here, um, from a point of view if there is a material uncertainty, uh,
you would need an note in the account. So technically, although the legislation itself reference 105 doesn’t necessarily give you that a requirement to company law firm, point of view of the auditors requirements. It does require you to, if you have some material uncertainty regarding going concern in your audit opinion, then you would need a note, under the ISA I’m not sure what ISA this is Mike,
you probably know off ISA 570. Um, your, your disclosure requirements would be very similar to what you would include under, under a, you know, section one a or FRS 102 set of accounts that you’d be including your, material uncertainties relating to the relation to going concern. So when you,
when you do have an audited set of FRS 105 accounts, and there is a material uncertainty, you would then look to what you would have on a full FRS 102 as regard going concern disclosure to make sure what would be disclosed. And again, that’s a company law issue section, you go to John but also ISA 570.
Yeah. So I suppose, um, Mike, we have that type of disclosure note. There is it in a set of probably cause punches on people on boot camp. Here are our effect. We FRS 102 members it’s also in there, uh, as well. I presume I think we might have a full set of FRS 102 accounts,
but it’d be just as applicable if you are in this situation, it’s minority sport, because usually you’re into a late file or something like that. If you’re doing FRS 105 audit accounts. But, but, uh, as well as if they do, if you do require like that there technically is the only disclosure required for COVID-19 legally.
Um, and from the standards perspective,for FRS 10f from a COVID-19 perspective, if, if he does require, we can send it on to him as a type of disclosure response, there’s no one size fits all for, uh, going concern, material uncertainty disclosure. But I suppose, you know, if,
if, if he, if he does know if it was a type of disclosure there.