FRC approves new UK GAAP

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Steven Collings
Audit and Technical Partner
Leavitt Walmsley Associates Ltd
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At its board meeting on 5 March 2013, the Financial Reporting Council (FRC) finally approved FRS 102 ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’.

From 1 January 2015, the new version will replace all existing financial FRSs, SSAPs and UITFs, bringing an end to several years of uncertainty about the direction of UK GAAP. The FRC is expected to issue the new standard in the next couple of weeks. 

The (now defunct) Accounting Standards Board (ASB) acknowledged some time ago that UK GAAP had become overly complex and voluminous. UK standard-setters had wanted the UK to adopt an international-based financial reporting framework to provide consistency in the way financial reporting works, within a high-quality and fit-for-purpose rep...

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07th Mar 2013 14:56

FRSSE 2015


I've been trying to search the fairly opaque FRC website for a draft of FRSSE 2015, to no avail. Does it exist yet?

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07th Mar 2013 15:09


Hi Nigel

Yes, it is in FRS 100 on page 9 headed 'Consequential Amendments to the FRSSE'.

Happy reading!

All the best


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to thestudyman
07th Mar 2013 15:42

Thanks Steve, I'm looking forward to it!


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07th Mar 2013 15:17

Comment from Grant Thornton

Earlier today we received the following statement from Joyce Grant, technical partner at Grant Thornton UK:

"Whilst the hard work of the standard setters is all but over, the hard work for preparers is just beginning. Although the headline issues from two years ago have been resolved, such as revaluation of fixed assets, the majority of companies will still find that they need to make changes to their accounts. The difficulty is that these differences may not always be obvious but could have the potential to alter profits, which will in turn affect a myriad of different aspects of a business, for instance banking covenants, tax bills and profit-related bonuses.

"What people need to figure out is precisely how this standard will affect their business, and what they can do to minimise potential negative impacts; this takes planning. One of the most talked about changes is the introduction of more fair value accounting, in particular for instruments such as foreign exchange forward contracts and interest rate swaps.

"Whilst we welcome this change as introducing greater transparency in the accounting for such instruments, there are likely to be real costs associated with the need to prepare, and have audited, valuations for these instruments.

"Companies with December year ends will need to be prepared to re-state their December 2013 balance sheet under the new standard, so where there could be measurement problems these will need to be tackled before the end of this year."

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to Julie Cameron
07th Mar 2013 15:53

Dog's Breakfast

I'm sure that Joyce is right in that there may be any number of unexpected and probably unintended consequences of this dog's breakfast. However, the fact remains that it is a shorter dog's breakfast than the one it replaces.

It would be so good if the thinking could be joined up so that the CA regulations could be changed as well, the language aligned, and the structure for Micros and small companies all set up and harmonised at the same time. World peace and an end to poverty would be pretty good too!

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to Portia Nina Levin
08th Mar 2013 15:52

In yer dreams!

Come on George, of course it doesn't!

Why bother with the transit vans when a management charge will usually do the trick?

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By pembo
08th Mar 2013 11:39

don't be silly George

if any of these new standards addressed such matters it would create a real issue for the poor old auditors who will of course have advised them for £squillions with their consultancy hat on to buy those 100 transit vans at £150k a pop off that BVI subsidiary manned when hes not attending to the swimming pool by the guy who looks after the apartment block. Meanwhile the rest of us who live in the real world of transparent balance sheets thankfully will only have to deal with the revised FRSSE 2015 where of course such activity is condemned sine die under threat of an appearance at Moorgate Place.

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08th Mar 2013 11:55

more confusion

So now we have FRS 100, 101, 102 where we can use IFRS, FRSSE or full standards as before? Along with the new rules with EU groups where the parent resides in EU then the sub needs no audit as they will guarantee it etc etc, seems to me its getting more complex, lets just have an audit for everything and anything and get it over with.

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08th Mar 2013 16:40

FRS 102

Is final version of FRS 102 avaiable to download?

Wahts the weblink?

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to Chris Mann
08th Mar 2013 16:53

Not yet as far as I'm aware Liaqat

They say in a couple of weeks

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to Chris Mann
14th Mar 2013 10:26
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to Ruddles
14th Mar 2013 11:17


Lucky we

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to markben
14th Mar 2013 14:23

Yes indeed!

Aren't we just?

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By Rehan1
09th Mar 2013 22:57

FRSSE 2008 & FRSSE 2012

I Can't wait to see where the differences lay between the two ?

Hopefully, we will get in 2 weeks.

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10th Mar 2013 22:15


Not really a great deal to look forward to!

Textual amendments include removing reference to FRSs/SSAPs/UITFs and incorporating FRS 102 and of course changing FRSSE (effective April 2008) to FRSSE (effective January 2015).

Goodwill/intangibles amortised over a 5-year life (rather than 20 years) where the directors cannot assign a useful economic life to such assets.

Some related party issues have been redefined.

Citations of an example where a product has become obsolete or seen a fall in demand has been deleted in paragraph 6.45.

I'm expecting FRSSE to be further amended in the future to be aligned to FRS 102 but in a nutshell that's your lot.


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to mbuffery
13th Mar 2013 11:54

FRSSE Amendments


I've become a FRSSE Geek!

Para 2.6 of the FRSSE and its footnote amended to change the wording on a small company's balance sheet, but they haven't changed para 2.30 which covers the same ground. Do they know it's never going to see the light of day?


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11th Mar 2013 15:49

And it's likely to change anyway

The EU is currently reworking its company law directives, aims to combine the 2 existing directives into 1 and has said that it will make huge cuts in the disclosure requirements for small companies - i.e. those covered by the FRSSE.

It has said that disclosures should be restricted to about 10 things and that it will be illegal for individual member states to insist on greater disclosure. ICAEW has some pretty good FAQs about it.

This is supposed to happen in 2013, but as we know speedy change is not exactly the EU's strong suit.

We shall see.

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13th Mar 2013 13:55

FRSSE Amendments (well spotted!!)

HI Nigel

I agree with you - definitely never going to see the light of day!

Possibly worth mentioning it to them, perhaps?  Though if they don't change it I don't see much consequence to preparers.  It may well be that during a file review, an eagle-eyed reviewer may spot the different wording (if software providers change both 2.6 and 2.30 to be consistent).  I know some reviewers do spot inconsistent wording for things like footnotes in the balance sheet but if I'm honest (our software company did this), I've just told the software company in the hope they do something about it and that's as far as I've gone.  Clients definitely couldn't care less!

An interesting couple of years ahead I reckon.......

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13th Mar 2013 15:07


Practitioners do notice and if it says one thing in one place in a standard and something else in another place, they're going to come to you or me for advice, and they tend not to believe us when we say "Er.........they got it wrong when they drafted the standard!"

ASB should have realised in 2008 that the small company regime does not represent "special provisions". Grrr.

I suppose if small company accounts are only going to be filed in abbreviated form, usually directly in iXBRL or via the COHo website, there aren't going to be many accounts rejected by CoHo.

However I still wonder about how it is that FRC can spell it out in such painstaking detail, whilst knowing it's likely to be superseded before it goes live, and then still make mistakes in the drafting. Ah well

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16th Apr 2013 07:36

Clarification please!

Can someone please clarify: 


I am an Australian accounting student doing an assignment on the reporting systems in the UK. Now i believe listed companies are required to report based on IFRS as of 2005. Are the GAAP and the new standards relevant to listed companies or just small to medium?



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