Posted on 20 May 2015
2015 saw the introduction of Financial Reporting Standard 102 (FRS 102). With many hailing this as the biggest change in UK reporting since the 1985 Companies Act, how much do you actually know about it?
What is FRS 102?
FRS 102 is the core of new UK GAAP which has already started to replace all of the old FRSs and SSAPS. Originally derived from International Financial Reporting Standards for Small and Medium Enterprises, FRS102 provides a concise and simplified accounting framework for companies in its scope.
Who does it effect?
The introduction of FRS 102 has led to a change in accounting for most UK companies and is mandatory for accounting periods beginning on or after 1st January 2015 for medium companies with further changes for small companies that currently apply the FRSSE for accounting periods beginning on or after 1st January 2016.
*N.B For charities there will be a choice of 2 Statement of Recommended Practices (SORP’s) for periods commencing after 1st April 2015. Please see our FAQ’s for more details.
FRS 102 generally requires full retrospective treatment on first time adoption. It contains specific transitional arrangements that allow companies not to restate certain transactions that have already been reflected under existing UK GAAP.
In essence, UK GAAP will be based solely on the accounting in FRS 102 and that will apply to small, medium and large companies.
But don’t panic…
We are already in the process of assessing each of our clients on an individual basis to identify the significance of the impact that the change from UK GAAP to FRS 102 will have.
We will be in touch in the near future but in the meantime, should you have any questions please refer to our FAQ guide below or get in touch with your usual Smith Cooper contact.
Download our FAQ guide here