By David Manning - Manager, Blockchain & Crypto Team While the title might seem dramatic, it is certainly the sentiment you will find across the array…
FRS 102 represents a major change to the UK financial reporting landscape. Understanding how the changes will impact on your company’s tax position will help you plan for the new regime, make informed decisions and ensure you have the information available. The new regime will apply to any company that is not eligible to use the small companies’ regime and is not required, or does not choose, to apply EU-adopted IFRS.
It is important to consider both the tax impact on transition as well as on-going implications. There may be far higher volatility in profits which need managing in terms of tax cashflow, as well as on the ability to pay dividends or restructure.
Planning ahead ensures you have time to fully consider the tax implications, allow time to do something differently, or make any beneficial tax elections.