FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (2024)

FAQs

What is the financial reporting standard applicable in the UK and Republic of Ireland? ›

FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The requirements in FRS 102 are based on the IFRS for SMEs Accounting Standard, with some significant amendments made for application in the UK and Republic of Ireland.

FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. This FRS is a single financial reporting standard that applies to the financial statements of entities that are not applying adopted IFRS, FRS 101 or FRS 105.

The new UK GAAP standard is FRS 102, 'The financial reporting standard applicable in the UK and Republic of Ireland'. It is based on the IFRS for SMEs, a simplified IFRS standard developed by the International Accounting Standards Board for non-publicly accountable entities.

Fellowship of the Royal Society (FRS, ForMemRS and HonFRS) is an award granted by the Fellows of the Royal Society of London to individuals who have made a "substantial contribution to the improvement of natural knowledge, including mathematics, engineering science, and medical science".

FRS 102 applies to financial statements that are intended to give a true and fair view of a reporting entity's financial position and profit or loss for a period. It applies not only to companies but also to public benefit and other types of entity.

FRS 102 “The Financial Reporting Standard Applicable in the UK and Republic of Ireland” is the 'main' standard which replaces current Irish GAAP. It is based on the IFRS for Small and Medium-sized Entities (IFRS for SMEs), which was issued by the International Accounting Standards Boards (IASB) back in July 2009.

FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. This FRS is a single financial reporting standard that applies to the financial statements of entities that are not applying adopted IFRS, FRS 101 or FRS 105.

Investment property under FRS 102 must be measured at fair value at each balance sheet date with fair value changes passing through profit or loss. There are no exceptions to this rule, other than exceptions relating to group members letting out or occupying property.

Under FRS 102, a small entity is defined as an entity that meets at least two of the following criteria: Total assets not exceeding £5.1 million. Annual turnover not exceeding £10.2 million. An average number of employees not exceeding 50.

Overview. FRS 102 “The Financial Reporting Standard Applicable in the UK and Republic of Ireland” (link to FRC website) is a single coherent financial reporting standard replacing old UK GAAP.

What is the purpose of FRS 102? ›

What is FRS 102? FRS 102 is a financial reporting standard that is applicable in the UK and Republic of Ireland. It sets out the measurement and recognition rules as well as the disclosure requirements that apply to entities who apply the standard.

There remain substantial differences between FRS 102 and US GAAP, and these are exacerbated by the decision of the FRC not to include any changes in respect of IFRSs 9,15 & 16 into FRS 102 as part of the First Triennial Review.

FRS 102 is a replacement of the old UK GAAP system and applies to financial statements that are intended to give a realistic view of a businesses financial position and profit or loss for a period and has been amended to comply with the Companies Act.

UK GAAP permits capitalizing development costs, granted certain conditions like technical feasibility, commercial viability, and management's commitment are met. US GAAP takes a more conservative route, mandating the expense of development costs as they occur, unless they pass stringent capitalization criteria.

Under IFRS, the standard allows the company to choose between holding the investment property at depreciated cost or at fair value with changes recognised in the profit or loss. Whereas under FRS 102, investment property must be measured at fair value if it can be reliably determined.

The FRC sets UK and Ireland accounting standards. Standards are amended periodically in response to particular issues or regular reviews. Standards are developed after taking account of outreach with stakeholders.

Ireland is an EU Member State. Consequently, Irish companies listed in an EU/EEA securities market follow IFRSs since 2005. The European Commission (EC) periodically issues a document which summarises the use of options of the IAS Regulation by European Union Member States.

The Common Reporting Standard (CRS) is a globally coordinated approach to the disclosure of financial account information in respect of individuals and organisations in order to combat tax avoidance and protect the integrity of tax systems.

Irish law requires all companies to prepare annual audited financial statements (complying with IFRS Standards), with an audit exemption for dormant companies, companies limited by guarantee, unlimited companies and companies that meet a certain size criteria.