FRS 102

---

On 14 March 2013 the Financial Reporting Council issued FRS 102 which is the Financial Reporting Standard applicable in the UK and Republic of Ireland. It is effective for periods beginning after 1 January 2015 (with early adoption permitted). This means that for a calendar year-end company currently preparing its financial statements in accordance with Irish GAAP, their financial statements would continue to be prepared in accordance with Irish GAAP up to and including their 2014 financial statements. The 2015 Financial Statements would then be prepared in accordance with the new framework, with the 2014 comparatives restated. The following is a brief  summary of changes in FRS 102.

FRS 102 Summary

• New formats for accounts – more disclosure
• Cash flow for all clients
• Disclose sources of estimation uncertainty and material risks
• Public benefit entities accounting
• Leases – more finance leases
• Revenue – earlier recognition
• Consolidations per new IFRS 3 method
• New Goodwill - 5 year life
• Material errors” not “fundamental errors”
• FX – spot rate not forward rate
• Agriculture – fair value
• Grants – new “performance” option
• Financial instruments accounting
  • Shares at fair value
  • Simple – amortised cost
  • Intercompany loans adjustment
  • Impairments – same process, simpler rules

 Who can adopt FRS 102?

• Any company currently applying Irish GAAP will be affected
• Optional for small entities adopting Financial Reporting Standards for Small Entities (FRSSE)

Remember the effective date for adopting the new standard is only ten months away. Forward planning is vital for a successful transition so you should start planning now.

For more information visit:

www.frc.org.uk

www.charteredaccountants.ie/

www.accaglobal.com

Contact Sheldon Zhang with your comments and queries. Sheldon Zhang is Audit Manager in OSK. Contact OSK today for all your tax and accounting services.

Share this Post