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New UK GAAP

In 2012 and 2013 the FRC revised financial reporting standards in the UK and Republic of Ireland. The revisions fundamentally reformed financial reporting, replacing almost all extant standard with three Financial Reporting Standards:

 FRS 100 Application of Financial Reporting Requirements

 FRS 101 Reduced Disclosure Framework 

 FRS 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland

 Impact Assessment: FRS 100, FRS 101, FRS 102

 Feedback Statement: FRED 46, FRED 47, FRED 48

In addition the FRSSE continues to be available for small entities.

IFRS for SMEs Consultation – FRC Response

The FRC response to the IASB’s IFRS for SMEs consultation is available here.

FRS 102 - Editorial Amendments and Clarification Statements

As the transition date of FRS 102 approaches, the FRC is beginning to consider queries arising from its implementation.  The FRC has issued editorial amendments or clarification statements relating to FRS 102 on the following topics:

Date of issue Section of FRS 102 Issue
2 Aug 2013 Section 1 Scope Clarification statement on the early application of FRS 102 by entities within the scope of a SORP
19 March 2014 Section 11 Basic Financial Instruments Editorial amendment regarding presentation requirements for financial instruments when an entity chooses to apply the recognition and measurement provisions of IAS 39 or IFRS 9 and/or IAS 39
19 March 2014 Section 12 Other Financial Instruments Issues Editorial amendment regarding presentation requirements for financial instruments when an entity chooses to apply the recognition and measurement provisions of IAS 39 or IFRS 9 and/or IAS 39
12 Nov 2013 Section 12 Other Financial Instruments Issues Clarification statement in relation to net investment hedges of foreign operations that are branches
12 Nov 2013 Section 29 Income Tax Clarification statement in relation to deferred tax arising on a business combination
19 March 2014 Section 35 Transition to this FRS Editorial amendment regarding transitional exemptions in relation to accounting for service concession arrangements

The FRC intends to include such matters in one compendium for ease of reference. The detail of the above statements can be accessed  here.

Ongoing projects 

Information on our on-going UK GAAP projects can be found here.

SORPs and new UK GAAP

As a result of the issue of the new UK accounting standard FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland by the FRC in March 2013, seven out of the eight existing SORP making bodies are currently updating their relevant SORP. The insurance sector SORP issued by the Association of British Insurers is expected to be withdrawn once the new accounting standard, FRS 103 Insurance Contracts, is issued by the FRC.

A summary of the current status of SORPs can be accessed here.

On 2 August 2013, the FRC issued a clarification statement relating to the early application of FRS 102 by entities within the scope of a SORP. This statement can be accessed  here.

Staff Education Notes

The FRC Staff have prepared 15 Staff Education Notes for the convenience of users of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. These Staff Education Notes aim to illustrate certain requirements of FRS 102, but should not be relied upon as a definitive statement on the application of the standard. The illustrative material is not a substitute for reading the detailed requirements of FRS 102.

The Staff Education Notes are available here

Future development of FRS 102

The FRC announced at the New UK GAAP launch event that it plans to carry out the first three year review of FRS 102 in 2016/17 with a view to the revised FRS 102 being effective in 2018.

The FRC plans to issue exposure drafts amending FRS 102 in relation to hege accounting and impairment of financial assets when the IASB finalises IFRS 9 Financial Instruments.

Previous consultations

For details of the exposure drafts and other previous consultations leading to the developments of the new UK accounting standards see here.

For advice on how to implement go to: www.newukgaap.co.uk (please be advised this is an external site).

New UK GAAP Launch Event - 15 May 2013

The FRC and the ICAEW's Financial Reporting Faculty held an event on 15 May 2013 marking the recent publication of FRS 102.  A summary note from the event is available  here

Contact details

If you would like to discuss any matters relating to UK accounting standards please contact:

Jenny Carter, Lead Project Director: j.carter@frc.org.uk
Mei Ashelford, Project Director: m.ashelford@frc.org.uk
Susanne Pust Shah, Project Director: s.pustshah@frc.org.uk

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