The Financial Reporting Council, today, issues FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland
; providing succinct accounting and reporting requirements for unlisted entities. The standard completes a fundamental modernisation of UK and Irish accounting standards and was formally approved at a meeting of the FRC Board on 5 March 2013.
Following the publication of FRS 100 and 101 in November 2012, FRS 102 completes a suite of accounting standards that put the UK at the leading edge of financial reporting. Advised by its Accounting Council, the FRC has considered responses to various discussion papers and exposure drafts to develop a proportionate, fit-for-purpose framework.
Roger Marshall, FRC Board member and Chairman of its Accounting Council said:
“FRS 102 modernises and simplifies financial reporting for unlisted companies and subsidiaries of listed companies as well as public benefit entities such as charities. The standard updates UK accounting to take account of evolving business practices. It is succinct, easy to digest and use. Developed with considerable consultation, FRS 102 brings a distinctly British flavour to the international standard for small and medium sized businesses. At around 350 pages the standard replaces close to 3000 pages of UK GAAP.”
The FRSs will be effective from 1 January 2015, but may be adopted early for accounting periods ending on or after 31 December 2012.
See below for Roger Marshall's interview with AccountingTV on the release of FRS 102:
Notes to editors:
The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. It sets the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. It represents UK interests in international standard-setting. It also monitors and takes action to promote the quality of corporate reporting and auditing. It operates independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
The FRC’s overriding objective in setting accounting standards is to enable users of accounts to receive high-quality understandable financial reporting proportionate to the size and complexity of the entity and users’ information needs. In meeting this objective, the FRC aims to provide succinct financial reporting standards, which amongst other things, have consistency with international accounting standards, reflect up-to-date thinking and developments in the way entities operate and the transactions they undertake; balance consistent principles with practical solutions; promote efficiency within groups and are cost-effective to apply. The FRC believes it has met these aims in developing FRS 102.
An exposure draft of FRS 102 (FRED 48) was issued in January 2012, followed in October 2012 by an exposure draft of limited scope amendments. The FRC issued FRS 100 Application of Financial Reporting Requirements and FRS 101 Reduced Disclosure Framework in November 2012. Together the three FRSs set out a new proportionate framework for accounting standards in the UK and Republic of Ireland. FRS 101 permits certain entities to apply International Financial Reporting Standards with reduced disclosures. FRS 102 may be applied by all entities, other than those required by law to apply IFRS. The FRSs will be effective from 1 January 2015, but may be adopted early for accounting periods ending on or after 31 December 2012.
FRS 102 is available here. It is based on the IFRS for SMEs tailored with regard to guiding principles to make it fit for purpose and proportionate to UK and Ireland business circumstances.
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