The FRC is seeking views to inform the periodic review of FRS 102

Mar 30, 2021

UK and Ireland accounting standards are subject to periodic reviews, at least every five years, to ensure they remain up-to-date and continue to require high-quality and cost effective financial reporting from entities within their scope.

The Financial Reporting Council (FRC) is starting the next periodic review of FRS 102, along with other UK and Ireland accounting standards.

Part of this process is seeking views from stakeholders on areas that might be considered as part of the review. The FRC note that this might include new issues/transactions that should be addressed, or comments or suggestions in relation to the current requirements. In addition to stakeholder feedback the review will consider recent developments in financial reporting (such as changes in IFRS) and relevant developments in the wider reporting framework. Stakeholders can provide comments to the FRC on any aspect of the standards to by 31 October 2021.

The FRC note that any changes to accounting standards that are proposed as a result of the periodic review will be subject to public consultation at a later date, not expected to be before 2022, and that the effective date for any amendments is currently expected to be 1 January 2024.

The FRC also expects to hold roundtable events for stakeholders to provide their views and will provide further details in due course.

UK and Ireland accounting standards comprise:

  • 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 103 Insurance Contracts; and
  • FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime.

The last periodic review, the Triennial review 2017, started with a request for feedback in March 2016. The final amendments were issued in December 2017, with an effective date of 1 January 2019.