News March 2016 FRC issues amendments to fair value disclosures in FRS 102

FRC issues amendments to fair value disclosures in FRS 102

08 March 2016


The Financial Reporting Council (FRC) has today issued Amendments to FRS 102 – Fair value hierarchy disclosures (PDF).  The amendments simplify the preparation of disclosures about financial instruments for financial institutions and retirement benefit plans.

The amendments have been finalised following an overwhelmingly positive response to the consultation.  As well as simplifying the preparation of the disclosures, the amendments will provide more meaningful information for users of the financial statements.

Melanie McLaren, Executive Director of Codes and Standards said:

“In publishing these amendments we are responding to issues raised by stakeholders, who have confirmed the benefits they will bring, including reducing the potential costs of compliance with FRS 102 and improving the information available to users.”

The amendments more closely align the relevant disclosure requirements with those in IFRS 13 Fair Value Measurement and are effective for accounting periods beginning on or after 1 January 2017, with early application permitted.  This will mean that entities can apply the changes in financial statements for accounting periods that ended on 31 December 2015, if those financial statements have yet to be approved.

The amendments only apply to financial institutions and retirement benefit plans; other entities applying FRS 102 are unaffected by these amendments.

Notes to editors:

1.  The FRC is responsible for promoting high quality corporate governance and reporting to foster investment.  We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work.  We represent UK interests in international standard-setting.  We also monitor and take action to promote the quality of corporate reporting and auditing.  We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.

2.  Read or download the Impact Assessment (PDF).