As you will be aware FRS 102 has replaced UK GAAP and this may significantly impact your business. However, despite these changes your finance departments have all the usual BAU to cope with and for a lot of businesses this means that putting the correct measures in place in order to be compliant may have taken a back seat.
The changes may nonetheless present some serious issues for you and your team to contend with. If you are not prepared sufficiently you may encounter some cash flow issues arising from the changes. Please find a couple of examples from Grant Thornton’s website below:
“Cash flow may be adversely affected where there are long-term arrangements such as bank loans or pension schemes that could affect your ability to pay dividends or ability to borrow money.
Areas such as non-market rate intra group loans will need to carry at fair value, possibly crystallising tax payments; and group pension schemes in deficit may realise a liability in a key group entity thereby creating a dividend trap.”
These changes came in to effect at the start of this year which means that 31 December 2015 year-end accounts will have to adhere to the new requirements. If you are not ready and your department is (as most are) already stretched, then the answer to this issue lies in using an Interim to take on the responsibility for this area to allow you to focus on all the other areas of the business’ finances.
The benefits of taking on a professional interim lie in the fact that you are gaining the business insight and professional expertise derived from numerous roles in diverse businesses that broadens and heightens the skills that these people can bring to your organisation. They have a proven ability to adapt to their roles at pace.
They know why they were brought in and are clear on the objective and timeframe to achieve the desired result. The nature of what they do means that you get someone with a proven ability to achieve these results. They take full accountability for their work and invariably offer more than they were initially recruited to deliver.
As explained on the ICAEW website:
• Deliver instant experience
• Bring industry or role-specific expertise
• Work at pace and in a hands-on style
• Take control immediately – so make an impact immediately
• Are fully accountable to the board
• Have no political baggage.
In terms of the recruitment process: there is no search fee, a simple daily rate, no addition to the fixed payroll and no termination costs.
But whilst these benefits are undoubtedly attractive in themselves, they overlook the significant impact on results that an experienced and successful senior interim executive can bring to any major project such as the FRS102 change.
It is a proven fact that interim managers improve business performance and generate a return on investment that far outweighs their fee.
I have a fantastic network of experienced interim professionals that are immediately available for assignments including transitioning processes to ensure adherence with FRS102.
If you have any interim requirements or would like to discuss how BTG can assist in your accountancy and finance recruitment please get in touch on 01612143840.
Written by Aaron Drewitt, Managing Director of BTG Recruitment