These financial statements for the year ended 31 December 2023 are the company’s first financial statements that comply with FRS 102 Section 1A. The company’s date of transition to FRS 102 Section 1A is 1 January 2022. Its last financial statements prepared in accordance with the entity’s previous financial reporting framework were for the year-ended 31 December 2022.
The transition to FRS 102 section 1A has resulted in a number of changes to the company’s accounting policies compared to those used when applying the previous financial reporting framework.
The following explanatory notes to the financial statements describe the differences between the entity’s equity and profit or loss presented under the previous financial reporting framework, FRS 105 and the amounts presented under FRS 102 Section 1A for the year-ended 31 December 2022 (the restated comparatives), as well as the equity presented in the opening balance sheet at 1 January 2022 (the date of transition). The notes also describe all the required changes in accounting policies made on first-time adoption of FRS 102 Section 1A.
(i) Investment properties
Under the entity’s previous financial reporting framework, FRS 105 investment properties were measured at initial recognition at its cost. Under FRS 102 Section 1A, investment properties are included in the balance sheet at fair value. Changes in fair value are recognised in profit or loss.
(ii) Deferred tax
Under the entity’s previous financial reporting framework, FRS 105 no deferred tax was provided in respect of revaluation surpluses on investment properties or non-monetary assets subject to revaluation. FRS 102 Section 1A requires that deferred tax is provided on such assets.