FRS 102 – The New GAAP

FRS 102 is the single standard that will replace all current SSAPs, FRSs, and UITFs. It will also bring UK GAAP closer to EU- adopted IFRSs as it was originally based on the IFRS for SMEs.

Since the first exposure draft was issued in 2010, the standard has been amended quite substantially to take into account comments received on the original and revised proposals.

The standard we now have includes a number of accounting options permitted in existing UK GAAP but which do not form part of the IFRS for SMEs.

The standard is mandatory for periods commencing on or after 1 January 2015 and early adoption is permitted for periods ending on or after 31 December 2012. Where an entity is within the scope of a SORP, early adoption is permitted, providing it does not conflict with the requirements of the current SORP or legal requirements.