London, England -- (SBWire) -- 05/19/2016 --The UK has guidance in place for all accounting practices, also known as Generally Accepted Accounting Practice in the UK, or GAAP. However recent updates to the guidance could have a big impact on certain business sectors such as construction and property. A new single standard has been issued to replace the GAAP, known as FRS102.
The amendments should not cause much disruption for the most part, however concerns are being raised within the construction industry due to the nature of the business and in particular, the impact of the new rules on their liabilities and assets.
The rules will affect non-basic financial arrangements such as loans, loan rates and accompanying terms and conditions which will be recognised on balance sheets with a thorough record of profit and loss, which will undoubtedly cause issues within the sector. It is of great importance to consider the impact of the new rules well in advance to alleviate any potential flaws with the plans, particularly in relation to banking covenants.
A spokesperson for Atkinsons Chartered Accountants commented "The replacement of GAAP practices with the FRS102 will bring many benefits and iron out previous flaws with the guidance, however, the new rules will impact on some sectors more than others. This needs to be considered prior to the rollout to ensure everyone is happy and not affected negatively."
About Atkinsons Chartered Accountants
Atkinsons Chartered Accountants provide an extensive selection of bespoke business accounting solutions for all kinds of UK businesses. For more information, please visit their website: www.atkinsons.uk.com
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