This guide explains the Phase 2 updates for UK Society Accounts prepared under the Co-operative and Community Benefit Society Act 2014 (CCBSA 2014). These changes ensure continued compliance with statutory requirements and apply to societies preparing accounts under FRS 102 Section 1A and FRS 105, where applicable.

Independent Reporting Accountant’s Report (IRA)

Societies that are not required to undergo a statutory audit may need to include an Independent Reporting Accountant’s (IRA) Report in accordance with Section 85 of the Co-operative and Community Benefit Society Act 2014.

What’s changed

• A new Independent Reporting Accountant’s Report template is now available.
• The Accountant’s Report section is fully editable.
• The IRA report can be included or excluded as required.

How to include an Independent Reporting Accountant’s Report

1. Open the Accounts Production file for the society.
2. Navigate to Reports.
3. Select Accountant’s Report.
4. Choose the Independent Reporting Accountant’s Report template.
5. Edit the report text as required to reflect the engagement and reporting accountant’s conclusions.

Note: The content of the report remains the responsibility of the reporting accountant and should be reviewed carefully before finalising the accounts.

Revenue Account (formerly Profit and Loss)

For societies, the primary performance statement may be referred to as a Revenue Account rather than a Profit and Loss Account.

What’s changed

• The heading “Profit and Loss” has been updated to “Revenue Account”.
• A compliance database option allows switching between:

• Revenue Account
• Profit and Loss Account
  • This option is available for FRS 102 and FRS 105 accounts.

How to switch between Revenue Account and Profit & Loss Account

1. Open the Compliance Database.
2. Go to Statutory Accounts Options.
3. Select either Revenue Account or Profit and Loss Account.
4. Save your changes and refresh the accounts.

The selected option will update both the heading and the related terminology throughout the accounts.

Balance Sheet terminology updates

Several Balance Sheet captions have been updated to align with terminology commonly used by societies.

What’s changed

• Called up share capital is now shown as Share capital.
• Retained earnings is now shown as Revenue account.
• The Revenue account caption is fully editable.
• The Balance Sheet statutory note has been updated.

Updated Balance Sheet note wording

The Balance Sheet now includes the following statement:

“The financial statements have been prepared in accordance with the Co-operative and Community Benefit Society Act 2014 and in accordance with the provisions of FRS 102 Section 1A (Small Entities).”

Editing the Revenue account caption

1. Navigate to the Balance Sheet section.
2. Select the Revenue account line.
3. Edit the caption text if required.
4. Save your changes.

Statement of Changes in Equity (SoCE)

The Statement of Changes in Equity has been updated to better reflect transactions specific to societies.

What’s changed

• Called up share capital is now shown as Share capital.
• Retained earnings is now shown as Revenue account (editable).
• New description options are available for common society transactions.

Available description options

You can now describe the following transactions using society-specific wording:

• Payment of dividends → Interest paid on members’ shares
• Ordinary share issue → New shares issued to members
• Redemption of equity shares → Members’ shares redeemed

How to update SoCE descriptions

1. Open the Statement of Changes in Equity.
2. Select the transaction line you want to amend.
3. Choose the appropriate society-specific description.
4. Review and save your changes.

Summary

These Phase 2 updates support compliance with the Co-operative and Community Benefit Society Act 2014 and improve clarity for users preparing society accounts. Ensure all updated terminology and reports are reviewed before final submission.

If you are unsure which options apply to your client, consult the engagement terms or relevant statutory guidance.