FRS 102: The transition

Steven Collings
Audit and Technical Partner
Leavitt Walmsley Associates Ltd
Share this content

FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland becomes mandatory for accounting periods commencing on or after 1 January 2015. Accountancy firms are being encouraged by many of the professional bodies to start planning for this change now and start gathering data to enable the transition process to be completed as smoothly as possible, explains Steve Collings. 

This article is the first article of two that considers the process for transition. The second will contain an illustrative set of financial statements prepared under old UK GAAP and converted to new UK GAAP so practitioners can see for themselves how the process works in real life...

Register with AccountingWEB for free to read the rest of the article, which includes:

  • Section 35: Transition to FRS 102
  • First annual financial statements
  • Process on transition
  • Reclassification of investment property revaluation reserve
  • Mandatory exceptions
  • Optional exemptions from full retrospective application
  • Disclosures at transition


Please Login or Register to read the full article

The full article is available to registered members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.


Please login or register to join the discussion.

04th Feb 2014 19:29

Very interesting article Steve, thank you, no doubt it will be referred back to regularly. It would be interesting to know how many clients will be charged for this additional one-off transition work and additional disclosure, can't see any of my clients agreeing to pay for something that they don't know or understand. Admittedly for the majority of clients there will be very little change. I also imagine there will be a lot of ignorance of the changes and therefore non-compliance for the next few years.

Thanks (0)
05th Feb 2014 13:13

FRS102 transition

All very sensible - but how much of it applies to the standard small, exempt, service companies with which most of us are dealing - eg consultants, solicitors etc. All these policies are written for the large companies and seem not to affect the majority of companies. In approx 200 companies I act for I can think of no more than 4/5 that have revalued fixed assets, 2 with more than one type of share capital. Why cant the powers that be just leave us all alone and introduce new standards such as this for just quoted companies.                                                                                                                                                                                                                                                                                                  We will all of course waste time and money going on courses to keep others happy that we understand FRS102. As usual the courses will be presented as if the participants are working for big 4 firms and dealing with FTSE100 company audits. Do these lecturers ever consider that the majority of us are never going to have clients who are involved in derivatives, hedge funds, insurance companies and banks? What a waste of time and money for us all.

Thanks (7)
05th Feb 2014 13:51


I think you've probably answered your own question in terms of how many small businesses/accountants will be affected by FRS102, probably similar to your practice, 3%-5% at most.

If FRS102 doesn't apply then is there any major concern? If you've read this article, and presumably the next one too, then will you have to attend any further courses or incur additional costs? I don't think I will, unless I'm still not clear on a specific issue relevant to one of my clients, in which case I'll probably take specific advice rather than attend a general course. Or perhaps ask one of the technical guru's on here!

Overall, it'll have very little impact on me or my clients so I'm not overly concerned. It's a bit of a chore reading a couple of articles (when I could be reading/researching more relevant information)......but on the other hand it reminds me exactly why I chose not to join a big audit firm, which will never fail to put a smile on my face!

Thanks (0)
06th Feb 2014 12:29


Johnster - I couldn't agree more! It's about time the (various) institutes got their act together and started doing what I'm sure we all consider is their job. Protecting the profession! How many of us know of "accountants" who set themselves up in business but are not qualified. I know of several in my area and they do nothing but damage to the profession. Instead of concerning themselves with this kind of nonsense they should be working towards making the title "Accountant" a title restricted to those who are qualified and a member of an institute. It would be a start if HMRC refused to deal with unqualified agents.

Thanks (0)
06th Feb 2014 18:24

For me at least all of this is relevant as we have about 250 clients that will be affected! Great if it doesn't affect you but not every accountant is in that position.

Thanks (0)
By GAgbo
08th Feb 2014 17:15

FRS 102

Very useful article - useful to know whether or not our clients are affected having read the article - in furtherance to the presentation by the Charity Commission during our last CANN (Community Accountancy National Network) Conference in Birmingham - 29 to 30 January 2014.  I am also, now able to advice my colleagues and clients accordngly.  I am looking forward to the second article.  Thank you.

Thanks (0)
08th Apr 2014 15:40

Accounting for Directors Loans under FRS 102

If a director has an interest free loan to a company with no fixed repayment date, how should the loan be accounted for in the company's accounts?

At face value or at a discounted (Fair Value) if the latter what discount rate should apply over what period?



Thanks (0)