Need to know — ICAEW and ICAS publish updated guidance on realised and distributable profits under the Companies Act 2006
The Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS) have jointly issued TECH 02/17 to assist companies in determining whether profits made are realised and can be paid out as dividends.
The guidance, which is equally applicable to companies applying IFRSS and UK GAAP, replaces TECH 02/10 which required significant updating following changes to IFRSs and UK GAAP and to reflect new issues that have arisen in practice. It takes effect immediately.
New guidance on accounting for intragroup off market loans has been added and the guidance on retirement benefit schemes has been rewritten. Clarity has also been provided on the application to long term insurance businesses as a result of Solvency II.
This Need to know discusses the key changes that have been made in TECH 02/17.
