The new UK GAAP: FRS 102 explained
In the second of a series of articles on the new UK GAAP, Steve Collings considers some of the more practical changes that will be brought about by FRS 102 The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and examines the issues that users of the FRSSE will need to be aware of.
On 14 March 2013, the Financial Reporting Council (FRC) finally published FRS 102 which will apply to unlisted entities. This marked the end of a lengthy period of uncertainty within the profession as to the direction in which UK GAAP, as we currently know it, will go.
Based on the International Financial Reporting Standard for Small-Medium Entities (IFRS for SMEs), FRS 102 brings about a simplified reporting regime for entities that will fall under its scope as well as introducing more up-to-date and relevant accounting requirements that have fallen behind in existing UK GAAP. Current UK GAAP is far too complex and practitioners have often complained about the onerous requirements imposed on themselves and their clients due to the voluminous nature of current UK GAAP.
FRS 102 is 350 pages long and in contrast to current UK GAAP at 3,000 pages long, the sheer reduction in volume will, on its own, be a welcome feature of FRS 102. Roger Marshall, an FRC board member and chairman of its accounting council said that FRS 102 “modernises and simplifies financial reporting for unlisted companies and subsidiaries of listed companies as well as public benefit entities such as charities.”
FRS 102 becomes mandatory...
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- Accounting changes