2. Introduction of FRS102
Terminology to SQA HN
Frameworks

3. New financial statement formats and accounting terminology
For accounting periods beginning on or after
1 January 2015, all the current financial reporting
standards and guidance issued by the Financial
Reporting Council have been withdrawn.

4. This means that all the FRSs, SSAPs, UITF Abstracts
and the Statement of Principles for Financial
Reporting are no longer effective.
Additionally, at the same date, the FRSSE 2008 has
been superseded by the FRSSE 2015.

5. From January 2015 the UK GAAP framework will be articulated on the following standards: FRS 100;
FRS 101; FRS 102; FRS 103; and FRSSEE 2015
FRS 102 is the Financial Reporting Standard Applicable in the UK and the Republic of Ireland, and is the single financial reporting standard that replaces almost all the existing standards and abstracts;

6. What does FRS102 mean for HN Units?
Changes to terminology that have ALWAYS been used in Unit specifications
Changes to ALL titles and layouts of financial statements
Changes to terminology used in ratios

7. SQA support so far
Update letter in August 2014 advising centres of changes
Use new terminology in classroom delivery for session 2014/15 if possible
Sample layouts issued for sole traders, partnerships, limited companies and plcs
Revised formulae for ratios
Suggested layouts and ratios and used in revised exemplars where appropriate

8. Upcoming Changes
From August session 2015/16 implement revised Unit specifications for HNC (level 6 or 7) in all centres
From August session 2016/17 implement revised Unit specifications for HND (level 8) in all centres
Assessment Exemplars/Assessment Support Packs (ASPs) will be updated to meet revised Unit specifications - centres must use these new assessments or devise/amend their own as appropriate

9. Which Units are affected
For HNC Accounting the following Units will change:
Preparing Final Accounts (layouts/ratios all Outcomes); Title change to Preparing Financial Statements
Cost Accounting (minor changes terminology Outcomes 1 and 5)
Using Financial Accounting Software (COA and layouts)
Management Accounting Using Information Technology (layouts and terminology Outcome 1)
Accounting: Graded Unit 1 (layouts)

10. Other Accounting Units
Business Accounting (Outcomes 1, 4 and 5 layouts and ratios)
- note also changes to US assessment
conditions for Outcomes 3 and 4
Financial Accounting Statements: An Introduction (Outcome 1 layouts)
Using Financial Accounting Statements (layouts and ratios Outcomes 2 and 3)
Recording Financial Transactions – very minor terminology changes

11. Development/revisions required
Teaching materials, formative assessments and pre-assessments require to be updated for all Units identified
More major changes required for Preparing Final Accounts (Preparing Financial Statements), Business Accounting, FAS: Intro, UFAS and Accounting: Graded Unit 1
All other Units will require more minor changes to relevant Outcomes for terminology and layout
Centres should timetable this session to plan for 2015/16

12. Questions?
Carolyn Gilchrist
February 2015