This is the first year that the company has presented its financial statements under Financial Reporting Standard 102 (FRS102) issued by the Financial Reporting Council.
The last financial statements, for the year ended 31 March 2016, were prepared under previous UK GAAP. The transition date to FRS 102 is therefore 1 April 2016.
Adopting FRS102 has meant that the accounting policy for financial instruments has changed to comply with the new standard as follows:
Loans were previously recorded at an undiscounted amount payable. Loans which represent a financing arrangement are now recorded at present value, using a market rate for a similar debt instrument.
This has resulted in an increase in reserves at the year end of £2,437.