UK GAAP - FRS 102

FRS 102 came into effect for accounting periods commencing on or after 1 January 2015

The following entities can apply FRS 102:

  • entities which are not required to apply IFRS;
  • small entities; and
  • micro-entities.

Small entities can also apply FRS 102 Section 1A (S1A) and micro entities can also apply FRS 102 S1A or FRS 105.

Accounting policy choices

The accounting policy choices you apply could enable you to influence the strength of your balance sheet or simplify your accounting but care must be taken because they may also create earnings volatility.

Fair value

Fundamental to FRS 102 is the concept of ‘Fair Value’. Fair value is the amount for which an asset, liability or equity instrument could be exchanged or settled between knowledgeable, willing parties in an arm’s length transaction. In some instances you may require expert advice to determine a fair value.

Frequently asked questions

Recent changes affecting entities reporting under FRS 102

For more information please get in touch with Danielle Stewart.