May 2014 Category Course title Author Accounting FRS102 - new and revised accounting policies Ralph Tiffin. Disclaimer and Copyright

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1 May 2014 Category Course title Author Accounting FRS102 - new and revised accounting policies Ralph Tiffin Disclaimer and Copyright Whilst every care has been taken in the preparation of this learning material we do not accept any liability resulting from reliance thereon. The material is intended to provide an understanding of a particular subject matter, not as specific advice directly applicable to your own or client's circumstances. This material may be printed out and used by the individual(s) with a subscription to the CCH e-cpd product, for the purpose of education and training. It may not otherwise be distributed, copied sold or used without the express written permission of Wolters Kluwer (UK) Ltd. Content Table 1. Introduction Selection and application of accounting policies Consistency of accounting policies Changes in accounting policies Sections where new policies are highly likely to be needed Illustrations of what may be involved when revising accounting policies Summary CCH is a trading name of Wolters Kluwer (UK) Ltd. Registered office: 145 London Road, Kingston upon Thames, Surrey, KT2 6SR. Wolters Kluwer (UK) Ltd is authorised and regulated by the Financial Services Authority for general insurance business. CCH Professional Development May 2014 Page 1/14

2 FRS102 - new and revised accounting policies 1. Introduction Financial Reporting Standard (FRS) 102 is new to the UK and is different to the UK Generally Accepted Accounting Principles (GAAP) we are used to. Everyone will have to review existing accounting policies and as a minimum update terminology but more likely also redraft. There may well be new accounting policies that are required. By completing this module you will be able to: Describe what FRS 102 requires as regards accounting policies; List authoritative references for accounting policies; Explain how changes to estimates and corrections of errors should be treated; and List FRS 102 sections where new accounting policies are most likely to be needed. Accounting policies are dealt with in section 10 of FRS Accounting Policies, Estimates and Errors. Section 10 provides guidance for selecting and applying the accounting policies used in preparing financial statements. It also covers changes in accounting estimates and corrections of errors in prior period financial statements. The module reviews the section 10 requirements and then lists the most likely financial statement items that will require new or revised accounting policies. This is followed by illustrations of how one company's policies change on the move from UK GAAP to International Financial Reporting Standards (IFRS) in FRS 102 is IFRS based but 'Anglicised' thus the illustrations are just that - an opportunity for you to get a feel for what transition means - accounting policies will need to follow FRS102 'law' and terminology. 2. Selection and application of accounting policies Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements and if an FRS or Financial Reporting Council (FRC) Abstract specifically addresses a transaction, other event or condition, an entity shall apply that FRS or FRC Abstract. However, the entity need not follow a requirement in an FRS or FRC Abstract if the effect of doing so would not be material. If an FRS or FRC Abstract does not specifically address a transaction, other event or condition, an entity s management shall use its judgment in developing and applying an accounting policy that results in information that is: a) relevant to the economic decision-making needs of users; and b) reliable, in that the financial statements: i) represent faithfully the financial position, financial performance and cash flows of the entity; CCH Professional Development May 2014 Page 2/14

3 ii) reflect the economic substance of transactions, other events and conditions, and not merely the legal form; iii) are neutral - that is free from bias; iv) are prudent; and v) are complete in all material respects. In making the judgment management should refer to and consider the applicability of the following sources in descending order: 1. the requirements and guidance in an FRS or FRC Abstract dealing with similar and related issues; 2. where an entity s financial statements are within the scope of a Statement of Recommended Practice (SORP) the requirements and guidance in that SORP dealing with similar and related issues; and 3. the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses and the pervasive principles in Section 2 Concepts and Pervasive Principles. In making judgments management may also consider the requirements and guidance in EU-adopted IFRS dealing with similar and related issues. Paragraphs 1.4 to 1.7 require certain entities to apply International Accounting Standard (IAS) 33 Earnings per Share (as adopted in the EU), IFRS 8 Operating Segments (as adopted in the EU) or IFRS 6 Exploration for and Evaluation of Mineral Resources. 3. Consistency of accounting policies An entity shall select and apply its accounting policies consistently for similar transactions, other events and conditions, unless an FRS or FRC Abstract specifically requires or permits categorisation of items for which different policies may be appropriate. If an FRS or FRC Abstract requires or permits such categorisation, an appropriate accounting policy shall be selected and applied consistently to each category. 4. Changes in accounting policies An entity shall change an accounting policy only if the change: is required by an FRS or FRC Abstract; or results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the entity s financial position, financial performance or cash flows. The following are not changes in accounting policies: 1. the application of an accounting policy for transactions, other events or conditions that differ in substance from those previously occurring; 2. the application of a new accounting policy for transactions, other events or conditions that did not occur previously or were not material; and 3. a change to the cost model when a reliable measure of fair value is no longer available (or vice versa) for an asset that an FRS or FRC Abstract would otherwise require or permit to be measured at fair value. CCH Professional Development May 2014 Page 3/14

4 If an FRS or FRC Abstract allows a choice of accounting treatment (including the measurement basis) for a specified transaction or other event or condition and an entity changes its previous choice, that is a change in accounting policy. The initial application of a policy to revalue assets in accordance with Section 17 Property, Plant and Equipment or Section 18 Intangible Assets other than Goodwill is a change in accounting policy to be dealt with as a revaluation in accordance with those sections, rather than in accordance with paragraphs and Applying changes in accounting policies (10.11) "An entity shall account for changes in accounting policy as follows: a) an entity shall account for a change in accounting policy resulting from a change in the requirements of an FRS or FRC Abstract in accordance with the transitional provisions, if any, specified in that amendment; b) when an entity has elected to follow IAS 39 Financial Instruments: Recognition and Measurement and/or IFRS 9 Financial Instruments instead of following Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues as permitted by paragraph 11.2, and the requirements of IAS 39 and/or IFRS 9 change, the entity shall account for that change in accounting policy in accordance with the transitional provisions, if any, specified in the revised IAS 39 and/or IFRS 9; and c) when an entity is required or has elected to follow IAS 33 Earnings per Share, IFRS 8 Operating Segments or IFRS 6 Exploration for and Evaluation of Mineral Resources and the requirements of those standards change, the entity shall account for that change in accounting policy in accordance with the transitional provisions, if any, specified in those standards as amended; and d) an entity shall account for all other changes in accounting policy retrospectively (see paragraph 10.12)." Retrospective application (10.12) When a change in accounting policy is applied retrospectively in accordance with paragraph 10.11, the entity shall apply the new accounting policy to comparative information for prior periods to the earliest date for which it is practicable, as if the new accounting policy had always been applied. When it is impracticable to determine the individual-period effects of a change in accounting policy on comparative information for one or more prior periods presented, the entity shall apply the new accounting policy to the carrying amounts of assets and liabilities as at the beginning of the earliest period for which retrospective application is practicable, which may be the current period, and shall make a corresponding adjustment to the opening balance of each affected component of equity for that period. Disclosure of a change in accounting policy (10.13) When an amendment to an FRS or FRC Abstract has an effect on the current period or any prior period, or might have an effect on future periods, an entity shall disclose the following: a) the nature of the change in accounting policy; CCH Professional Development May 2014 Page 4/14

5 b) for the current period and each prior period presented, to the extent practicable, the amount of the adjustment for each financial statement line item affected; c) the amount of the adjustment relating to periods before those presented, to the extent practicable; and d) an explanation if it is impracticable to determine the amounts to be disclosed in (b) or (c) above. Financial statements of subsequent periods need not repeat these disclosures When a voluntary change in accounting policy has an effect on the current period or any prior period, an entity shall disclose the following: a) the nature of the change in accounting policy; b) the reasons why applying the new accounting policy provides reliable and more relevant information; c) to the extent practicable, the amount of the adjustment for each financial statement line item affected, shown separately: for the current period; for each prior period presented; and in the aggregate for periods before those presented; and d) (d) an explanation if it is impracticable to determine the amounts to be disclosed in (c) above. Financial statements of subsequent periods need not repeat these disclosures. Changes in accounting estimates (10.15) A change in accounting estimate is an adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities. Changes in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors. When it is difficult to distinguish a change in an accounting policy from a change in an accounting estimate, the change is treated as a change in an accounting estimate. An entity shall recognise the effect of a change in an accounting estimate, other than a change to which paragraph below applies, prospectively by including it in profit or loss in: the period of the change, if the change affects that period only; or the period of the change and future periods, if the change affects both To the extent that a change in an accounting estimate gives rise to changes in assets and liabilities, or relates to an item of equity, the entity shall recognise it by adjusting the carrying amount of the related asset, liability or equity item in the period of the change. CCH Professional Development May 2014 Page 5/14

6 Disclosure of a change in estimate An entity shall disclose the nature of any change in an accounting estimate and the effect of the change on assets, liabilities, income and expense for the current period. If it is practicable for the entity to estimate the effect of the change in one or more future periods, the entity shall disclose those estimates. Corrections of prior period errors (10.19) Prior period errors are omissions from, and misstatements in, an entity s financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that: a) was available when financial statements for those periods were authorised for issue; and b) could reasonably be expected to have been obtained and taken into account in the preparation and presentation of those financial statements. Such errors include the effects of mathematical mistakes, mistakes in applying accounting policies, oversights or misinterpretations of facts, and fraud (10.20) This is where FRS102 may lead to more adjustments and resultant disclosure as existing UK GAPP talks of "fundamental" errors rather than the range of possible material errors as above. To the extent practicable, an entity shall correct a material prior period error retrospectively in the first financial statements authorised for issue after its discovery by: a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or b) if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented. When it is impracticable to determine the period-specific effects of a material error on comparative information for one or more prior periods presented, the entity shall restate the opening balances of assets, liabilities and equity for the earliest period for which retrospective restatement is practicable (which may be the current period). Disclosure of prior period errors An entity shall disclose the following about material prior period errors: a) the nature of the prior period error; b) for each prior period presented, to the extent practicable, the amount of the correction for each financial statement line item affected; c) to the extent practicable, the amount of the correction at the beginning of the earliest prior period presented; and d) an explanation if it is not practicable to determine the amounts to be disclosed in (b) or (c) above. Financial statements of subsequent periods need not repeat these disclosures. CCH Professional Development May 2014 Page 6/14

7 5. Sections where new policies are highly likely to be needed Where there are significant differences identified in the FRS: Error correction (as described above); Investment property (treatment of revaluation amount); Intangible assets and goodwill (Assumed life of 5 years or less); Deferred tax (deferred tax on revalued assets); Grants (choice of method of matching grant and expenses); and For Specialised activities (section34). Where FRS 102 may be seen to be different: Revenue recognition - more definition of revenue streams and the point of recognition; and Leases - more operating leases may be caught with the FRS102 wording. Generally anywhere where the transition is used as a time to 'tighten up', include more, or finesse existing accounting policies. 6. Illustrations of what may be involved when revising accounting policies Below are extracts from IMI plc accounts pre IFRS and 2006 post implementation. FRS102 is based on the IFRS for small & medium sized entities (SMEs) which is in turn based on IFRS. Thus the wording and detail below cannot simply be accepted as appropriate for FRS102 accounting policy wording - but they are indicative of the changes you may expect. IMI is a good, 'no- nonsense' company and thus a good example of what an acceptable transition in accounting policies from existing UK GAAP to FRS 102 compliant GAAP might look like. Basis of accounting The financial statements have been prepared under the historical cost convention modified by the revaluation of certain tangible fixed assets and in accordance with applicable UK accounting standards. A very traditional UK wording Basis of accounting The financial statements are presented in pounds sterling (which is the Company s functional currency), rounded to the nearest hundred thousand. They are prepared on the historical cost basis except that the following assets and liabilities are stated at their fair value: pension plan assets, derivative financial instruments, and assets and liabilities identified as hedged items. Non-current assets and disposal groups held for sale, where applicable, are stated at the lower of carrying amount and fair value less costs to sell. CCH Professional Development May 2014 Page 7/14

8 The accounting policies have been applied consistently throughout the Group for the purposes of these consolidated financial statements. A reference to UK GAAP FRS 102 will be required somewhere in the notes The disclosure and explanation of estimates and judgments are very important in the IFRS world and this also crops up in FRS 102 Use of estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. The nature of the markets in which the Group operates leads, from time to time, to a variety of possible legal and other claims from customers. Whenever such matters are notified to the Group, they are investigated and any liability which results is recognised in the accounts as soon as a reliable estimate can be made. The Company has disposed of a number of its previous businesses. The sale agreements contained various warranties and indemnities. In some cases, the agreements also include the potential for adjustment to the purchase price, sometimes contingent on future events. At the time of disposal, the accounts reflect the best estimate of the likely future impact of these agreements. Estimates are updated at each reporting date to reflect the latest information available. Information about other areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the notes which follow. This is a pretty full explanation and does illustrate what might be expected - the FRC has pointed out for years that wording on this topic should not just be generalist 'boiler plate' but as specific as possible. Tangible fixed assets Freehold land and assets in the course of construction are not depreciated. Depreciation is calculated so as to write off the cost of other tangible fixed assets to residual values over the period of their estimated useful lives within the following ranges: Freehold buildings Leasehold land and buildings 25 to 50 years period of lease CCH Professional Development May 2014 Page 8/14

9 Plant and machinery 3 to 20 years Expenditure on patents purchased by the Group is charged against profits in the year in which it is incurred. Property, plant and equipment 2006 Freehold land and assets in the course of construction are not depreciated. Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses (see accounting policy Impairment ). Where an item of property, plant and equipment comprises major components having different useful lives, they are accounted for as separate items of property, plant and equipment. Depreciation is charged to the income statement on a straight line basis (unless such a basis is not aligned with the anticipated benefit) so as to write down the cost of assets to residual values over the period of their estimated useful lives within the following ranges: Freehold buildings Leasehold land and buildings Plant and machinery 25 to 50 years period of lease 3 to 20 years Both are straightforward but the 2006 version brings in the important issues of impairment - tangible fixed assets should be reviewed for impairment - simply relying on depreciation and the passing of time to deal with loss in value is not enough. Where an asset has components then these parts should be depreciated at different rates if their lives are different. Although UK GAAP has covered these points it seems some companies might have ignored them - maybe the issues are immaterial. BUT this is an area where your auditors could score points! `Impairment The carrying values of the Group s non-financial assets other than inventories (see accounting policy Inventories ) and deferred tax assets (see accounting policy Income tax ), are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset or all assets within its cash-generating unit is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement. Calculation of recoverable amount The recoverable amount of the Group s receivables is calculated as the present value of expected future cash flows, discounted at the original effective interest rate inherent in the asset. Receivables with a short duration are not discounted. The CCH Professional Development May 2014 Page 9/14

10 recoverable amount of other assets is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows generated (based upon the latest Group three year plan and prudently extrapolated using an appropriate long-term growth rate in perpetuity consistent with GDP growth) are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Management believe that this approach is appropriate based upon historical experience. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. No note in 2004 but a fairly comprehensive note in it may be that your assets are straightforward with no or totally immaterial impairment, but this is another area to check. Research and development Expenditure on research and development is charged against profits in the year in which it is incurred, except for expenditure on tangible fixed assets which is capitalised and depreciated in the normal manner. Intangible assets - ii) Research and development Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised in the income statement as an expense as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised provided benefits are probable, cost can be reliably measured and if, and only if, the product or process is technically and commercially feasible and the Group has sufficient resources to complete development. The expenditure capitalised includes the cost of materials, direct labour and directly attributable overheads. Other development expenditure is recognised in the income statement as an expense as incurred. Capitalised development expenditure is stated at cost less accumulated amortisation (see below) and impairment losses (see accounting policy Impairment ). This is a change in policy as IFRS is considered to require the capitalization of development expenditure. UK GAAP allowed capitalization but as for IMI the majority of companies tended to play safe and write all expenditure off in the year incurred. FRS102 allows capitalization of development expenditure if recognition and measurement conditions are met - but the prudent approach of writing off such expenditure is also allowed - section18h FRS102 - An entity may recognise an intangible asset arising from development. Stocks Stocks are valued at the lower of cost and net realisable value. In respect of work in progress and finished goods, cost includes all direct costs of production and the appropriate proportion of production overheads. CCH Professional Development May 2014 Page 10/14

11 Inventories Inventories are valued at the lower of cost and net realisable value. In respect of work in progress and finished goods, cost includes all direct costs of production and the appropriate proportion of production overheads. Apart from the change in title, stocks are stocks, and we all know how to account for them! Turnover Turnover represents amounts invoiced by the Group in respect of goods and services provided during the year, excluding sales between group companies and sales related taxes. Long term contracts Income and profits on long term contracts are recognised in proportion to the value of work done on the contract after making an estimate of costs to complete and risks associated with the contract. Full provision is made for any losses in the year in which they are first foreseen. Turnover becomes revenue and long term contracts and work in progress (WIP) issues are more likely to be dealt with in the revenue policy - goodbye Statement of Standard Accounting Practice (SSAP) 9! Revenue Revenue from the sale of goods is recognised in the income statement when the significant risks and rewards of ownership have been transferred to the buyer and reliable measurement is possible. No revenue is recognised where recovery of the consideration is not probable or there are significant uncertainties regarding associated costs, or the possible return of goods. The above wording is compliant but this is an area where the FRC has bored on for some years about more specific detail being required. Not just 'boiler plate' wording. The 2012 IMI accounting polices extract lets you see how things have evolved and is nearer what may be required to properly comply with FRS 102: Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and that the revenue can be reliably measured. The nature of the machinery, valve and other contracts into which the Group enters means that: the contracts usually contain discrete elements, each of which transfers risks and rewards to the customer. Where such discrete elements are present, revenue is recognised on each element in accordance with the policy on the sale of goods. CCH Professional Development May 2014 Page 11/14

12 the service element of the contract is usually insignificant in relation to the total contract value and is often provided on a short-term or one-off basis. Where this is the case, revenue is recognised when the service is complete. As a result of the above, the significant majority of the Group s revenue is recognised on a sale of goods basis. The specific methods used to recognise the different forms of revenue earned by the Group are set out below: i) Sale of goods Revenue from the sale of goods is recognised in the income statement net of returns, trade discounts and volume rebates when the significant risks and rewards of ownership have been transferred to the buyer and reliable measurement is possible. No revenue is recognised where recovery of the consideration is not probable or there are significant uncertainties regarding associated costs, or the possible return of goods. Transfers of risks and rewards vary depending on the nature of the products sold and the individual terms of the contract of sale. Sales made under internationally accepted trade terms, Incoterms 2010, are recognised as revenue when the Group has completed the primary duties required to transfer risks as defined by the International Chamber of Commerce Official Rules for the Interpretation of Trade Terms. Sales made outside Incoterms 2010 are generally recognised on delivery to the customer. ii) Rendering of services As noted above, because revenue from the rendering of services is usually insignificant in relation to the total contract value and is generally provided on a shortterm or one-off basis, revenue is usually recognised when the service is complete. Where this is not the case, revenue from services rendered is recognised in proportion to the stage of completion of the service at the balance sheet date. The stage of completion is assessed by reference to the contractual agreement with each separate customer and the costs incurred on the contract to date in comparison to the total forecast costs of the contract. Revenue recognition commences only when the outcome of the contract can be reliably measured. Installation fees are similarly recognised by reference to the stage of completion on the installation unless they are incidental to the sale of the goods, in which case they are recognised when the goods are sold. When a transaction combines a supply of goods with the provision of a significant service, revenue from the provision of the service is recognised separately from the revenue from the sale of goods by reference to the stage of completion of the service unless the service is essential to the functionality of the goods supplied, in which case the whole transaction is treated as a construction contract. Revenue from a service that is incidental to the supply of goods is recognised at the same time as the revenue from the supply of goods. CCH Professional Development May 2014 Page 12/14

13 Hopefully your sales / revenue may be more easily accounted for but explanation is needed for each material distinct revenue stream. Taxation Except where otherwise required by accounting standards, full provision without discounting is made for the tax on all timing differences which have arisen but not reversed at the balance sheet date. IFRS Income Tax accounting and disclosures are not the same as for the Anglicised FRS 102 but this example illustrates that MORE disclosure will be required. Income tax Current tax represents the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and taking into account any adjustments in respect of prior years. Deferred tax is provided, using the balance sheet method, on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that the timing of the reversal of the differences can be controlled and it is probable that the differences will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to apply when the temporary differences reverse, based on the tax laws that have been enacted or substantively enacted by the balance sheet date. A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the temporary difference can be utilised. Leasing Assets acquired under hire purchase and finance leasing contracts are recorded in the balance sheet as fixed assets at their equivalent capital value and are depreciated over the useful life of the asset. The corresponding liability is recorded as a creditor and the interest element of the amount paid is charged against profits. Payments under operating leases are charged to the profit and loss account as they arise. The majority of leasing transactions entered into by the Group are operating leases. There is a more detailed explanation of what 'equivalent capital value' is. The IFRS is considered stricter in classifying assets as leased and it will be interesting to see if FRS 102 is interpreted likewise. IMI makes the clear statement that most transactions are for operating leases. Leased assets CCH Professional Development May 2014 Page 13/14

14 Leases where the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Plant and equipment acquired by way of finance lease is stated at an amount equal to the lower of its fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation (see above) and impairment losses (see accounting policy Impairment ). Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognised in the income statement as an integral part of the total lease expense. The majority of leasing transactions entered into by the Group are operating leases. Financial instruments To qualify as a hedge, a financial instrument must be related to actual foreign currency assets or liabilities or to a probable commitment. It must involve the same currency or similar currencies as the hedged item and must also reduce the risk of foreign currency exchange movements on the Group s operations. Gains and losses arising on these contracts are deferred and recognised in the profit & loss account, or as adjustments to the carrying amount of fixed assets, only when the hedged transaction has itself been reflected in the Group s accounts. If an instrument ceases to be accounted for as a hedge, for example because the underlying hedged position is eliminated, the instrument is marked to market and any resulting profit or loss recognised at that time. The 2006 and 2012 IMI policies are inevitably more detailed. FRS 102 has specific sections 11 and s12 on financial instruments and ecpd modules on these will be available later in the year. It is hoped that the above will give you a better feel for what has to be, or is being done. 7. Summary The key things to remember from this module are: As a minimum new terminology is used; Some accounting policies will have to change; New accounting policies may be needed; and This is a good time to review all accounting policies. CCH Professional Development May 2014 Page 14/14