Proactive Consulting for Professionals Limited

FRS 102- The New Financial Reporting Standard

FRS 102 has been published by the Financial Reporting Council in the UK. It is based on the IFRS for SME’s, and will replace all other SSAP’s, FRS’s and UITF abstracts. It will apply on a mandatory basis to all medium and large entities in the UK.

FRS 102 has become compulsory for those entities it applies to from accounting periods beginning on or after 1 January 2015.

From 1 January 2016, the accounting treatments prescribed by FRS 102 became the ones used by small entities too.

The sooner entities arrive at their strategy for financial reporting in the future, the more confidence users will derive from their accounts.

Some of the key changes include:

  • Revenue recognition- the course will demonstrate how certain entities can reverse UITF 40. This will especially apply to accountants themselves! (Indeed, it could be argued that accountants are the industry most affected by FRS 102!);
  • Related party transaction- disclosures will be less onerous in some respects; and
  • Goodwill- there will be more prescription as to the estimated useful life.

Other areas of change when moving from current GAAP to FRS 102 include:

  • Investment properties;
  • Grant accounting;
  • Deferred tax (unfortunately, it hasn’t been abolished!);
  • Presentation on long term versus short term liabilities and assets;
  • Some minor disclosure issues;
  • And many more…………….
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Proactive Consulting for Professionals Limited is a company registered in England and Wales.
Registered Office: 1 Grange Wood, Grammar School Lane, West Kirby, Wirral, CH48 8BU.
Company Registration Number: 03905318
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