New UK GAAP – FRS 100, 101 & 102 : A Quick Overview
The Financial Reporting Council (FRC) in UK has published three standards which form the basis of the new UK GAAP. These standards are applicable in UK and in Ireland. This framework will be effective for the accounting periods beginning from 1st January 2015. The FRC has also permitted the usage of these new standards for accounting periods ending on or after 31st December 2012, provided that there is no conflict with the requisites of the present SORP (Statement of Recommended Practice).
The three FRS Standards are:
- FRS 100 – Application of Financial Reporting Requirements
- FRS 101 – Reduced Disclosure Framework
- FRS 102 – The Financial Reporting Standard applicable in the UK and Republic of Ireland
FRS 100 – Application of Financial Reporting Requirements
The objective of FRS 100 is to set the financial reporting framework according to the legislation, regulations or accounting standards in UK and Ireland. FRS 100 will be applicable for financial statements pertaining to assets, liabilities, financial position and profit or loss for a period which is meant to provide a true and fair view.
FRS 101 – Reduced Disclosure Framework
The FRS 101 sets the reduced disclosure framework which deals with disclosure exemptions for qualified entities (individual financial statements of subsidiaries, including intermediate parents, and ultimate parents) that usually apply the recognition, measurement and disclosure requisites of EU-adopted IFRSs.
FRS 102 – The Financial Reporting Standard applicable in the UK and Republic of Ireland
The FRS 102 replaces a major portion of the UK financial reporting standards. This is applicable for large and medium-sized UK entities which includes public benefit entities, retirement benefit plans and financial institutions. Hence, the scope of FR 102 standard would be greater than the other standards. This Standard has 350 pages compared to the existing UK GAAP which is 3000 pages. The reduction in the pages shows that the financial reporting standards are modernized and simplified. This standard is also based on the IFRS for SMEs.
DTracks Limited is a part of DataTracks Services Limited, leaders worldwide in preparation of financial statements in XBRL and iXBRL formats for filing with regulators. DataTracks prepares more than 12,000 XBRL statements annually for filing with regulators such as SEC in the United States, HMRC in the United Kingdom and MCA in India.
To find out more about DataTracks, visit www.datatracks.co.uk or send an email to email@example.com
The views expressed are that of the author’s and DataTracks is not responsible for the contents or views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person or organization, please alert us at firstname.lastname@example.org. We will take immediate action to correct any violation.