FRS 102 is here

On 14 March 2013, the Financial Reporting Council (FRC) finally published FRS 102 which will apply to unlisted companies. This marked the end of a lengthy period of uncertainty within the profession as to the direction in which UK GAAP, as we currently know it, will go.

Based on the International Financial Reporting Standard for Small-Medium Entities (IFRS for SMEs), FRS 102 brings about a simplified reporting regime for entities that will fall under its scope as well as introducing more up-to-date and relevant accounting requirements that have fallen behind in existing UK GAAP. Current UK GAAP is far too complex and practitioners have often complained about the onerous requirements imposed on themselves and their clients due to the voluminous nature of current UK GAAP.

FRS 102 is 350 pages long and in contrast to current UK GAAP at 3,000 pages long, the sheer reduction in volume will, on its own, be a welcome feature of FRS 102.

FRS 102 becomes mandatory for accounting periods commencing on or after 1 January 2015, with early adoption allowed and there are a lot of issues that accountants in industry and practice for whom this standard will be applicable must consider well before this date.

We at Pincott Lee are perfectly placed to provide training and consultancy services to smooth the process of transferring to this new regime.  Contact us for more details.