The new UK GAAP: FRS 102 explained

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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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About Steven Collings


Steve Collings, FMAAT FCCA is the audit and technical partner at Leavitt Walmsley Associates Ltd where Steve trained and qualified.


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By tadek
07th Apr 2013 10:58


Hi - i am not presently residing in the UK, but South Africa which country has now moved to adopting the Financial Reporting Standards of the IFRS Foundation and International Accounting Standards Board ie both IFRS and IASB pronounements. I am curious as to why the UK would not also now fully adopt the statements of the IFRS Foundation in place of what seems to be statements that are peculair to the UK.  This seems even more of an irony when i see that the headoffice of the IFRS foundation is based in London. I aplogies if this  comment is not directly related to the article at hand but i wonder which pronouncements i should follow that if the FRC or the increasingly more wodely recognised and influential IFRS and IASB - Thanks

Thanks (1)
16th Apr 2013 11:32

Intangibles Assets

Hello there,

It is not clear to me what is categorised as Intangible assets under the FRS 102.  Can anyone tell me where I can get more info about this.


Thanks (0)
17th Apr 2014 13:21

Less is more

FRS 102 is 350 pages long and in contrast to current UK GAAP at 3,000 pages long, 

I welcome the reduction in the wording between FRS 102 and GAAP, lets be honest who is likely to even look at a document 3000 pages long, let alone read or interpret it.


Concise reports with relevant practical examples are 10 times better than wordy reports trying to cover every all bases.   The FRS 102 sounds like a work of art, On another matter is there a date in place when the FRSSE will be removed. 

Is FRS 102 to replace the FRSSE or complement it. 

Thanks (0)
17th Oct 2016 11:42

How does FRS 102 apply to Licence income?

Say I sign a contract with a customer on 1 Jan 2016 for a SAAS service under which I incur installation costs of £9000 and installation is completed on 30 June 2016. On successful completion of installation the contract stipulates a payment to be made to me of £10,000 and the contract stipulates 3 further licence payments of £10,000 annually on the anniversary of the installation date.
How do I recognise income?
Do I take in £40,000 less £9,000 = £31,000 in 2016 or £1,000 in 2016 and £10,000 in 2017, 2018, and 2019?

Thanks (0)