With effect from periods commencing on or after 1 January 2015, UK GAAP as we currently know it will cease to exist. Under the Companies Act, companies which have not adopted IFRS will be required to adopt either FRS 101 (EU-IFRS) or FRS 102 (‘new UK GAAP’). Groups need to consider appropriate actions, in particular the use of elections, well before 2015. Changes to accounting standards will result in changes to the tax treatment of items such as loan relationships, derivatives and intangible assets. Groups should therefore involve the tax department in the decision-making process in order to ensure that there are no unpleasant tax surprises on conversion.
