Accounting Standards and Guidance

FRC Financial Reporting Standards (FRSs)

UK/Irish accounting framework (effective for periods beginning on or after 1 Jan 2015)

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

Section 1 Scope
Basis of preparation of financial statements
1.3As stated in FRS 100, an entity that is required by the IAS Regulation (or other legislation or regulation) to prepare consolidated financial statements in accordance with EU-adopted IFRS must do so. The individual financial statements of such an entity, or the individual financial statements or consolidated financial statements of any other entity within the scope of FRS 100, must be prepared in accordance with the following requirements:
 (a)If the financial statements are the individual financial statements of an entity that is eligible to apply FRS 1052, they may be prepared in accordance with that standard.
 (b)If the financial statements are those of an entity that is not eligible to apply FRS 105, or of an entity that is eligible to apply FRS 105 but chooses not to do so, they must3 be prepared in accordance with this FRS, EU-adopted IFRS or FRS 1014. [AMD 54]
1.4An entity whose ordinary shares or potential ordinary shares are publicly traded, or that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing ordinary shares in a public market, or an entity that chooses to disclose earnings per share, shall apply IAS 33 Earnings per Share (as adopted in the EU).
1.5An entity whose debt or equity instruments are publicly traded, or that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market, or an entity that chooses to provide information described as segment information, shall apply IFRS 8 Operating Segments (as adopted in the EU). If an entity discloses disaggregated information, but the information does not comply with the requirements of IFRS 8, it shall not describe the information as segment information.
1.6An entity shall apply FRS 103 to:
 (a)insurance contracts (including reinsurance contracts) that it issues and reinsurance contracts that it holds; and
 (b)financial instruments with a discretionary participation feature that it issues [AMD 148]
1.7When applying IAS 33, IFRS 8 and IFRS 6 Exploration for and Evaluation of Mineral Resources (see paragraphs 34.11 to 34.11C), references made to other IFRSs within those standards shall be taken to be references to the relevant section or paragraph in this FRS. [AMD 149]
2 The eligibility criteria for applying FRS 105 are set out in legislation and FRS 105. In establishing whether the eligibility criteria have been met turnover and balance sheet total shall be measured in accordance with FRS 105; the measurement of turnover and balance sheet total in accordance with FRS 101 or FRS 102 need not be considered.
3 Under company law in the Republic of Ireland, certain entities are permitted to prepare 'Companies Act financial statements' under a financial reporting framework based on accounting standards other than those issued by the FRC. Please refer to Appendix IV for further details.
4 Individual financial statements that are prepared by a company in accordance with FRS 101 or FRS 102 are Companies Act individual accounts (section 395(1)(a) of the Act), whereas those prepared in accordance with EU-adopted IFRS are IAS individual accounts (section 395(1)(b) of the Act).
AMD 54

Amendment

Paragraph 1.3 and footnote 4 amended by Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland - Small entities and other minor amendments (issued July 2015)

Effective date

01/01/2016 (Earlier application permitted subject to certain conditions - see paragraph 1.15)

Previous text

1.3 As stated in FRS 100, an entity that is required by the IAS Regulation (or other legislation or regulation) to prepare consolidated financial statements in accordance with EU-adopted IFRS must do so. The individual financial statements of such an entity, or the individual financial statements or consolidated financial statements of any other entity within the scope of FRS 100, must be prepared in accordance with the following requirements:

(a) If the financial statements are those of an entity that is eligible to apply the FRSSE4, they may be prepared in accordance with that standard.

(b) If the financial statements are those of an entity that is not eligible to apply the FRSSE, or of an entity that is eligible to apply the FRSSE but chooses not to do so, they must5 be prepared in accordance with this FRS, EU-adopted IFRS or FRS 1016.

4 The eligibility criteria for applying the FRSSE are set out in paragraph 8 of the FRSSE. One of the criteria is that the entity must be 'small' as defined in company law. Turnover and balance sheet total should be measured in accordance with the FRSSE for the purposes of establishing whether the entity is 'small'; the measurement of turnover and balance sheet total in accordance with FRS 101 or FRS 102 need not be considered.

5 Under company law in the Republic of Ireland, certain companies are permitted to prepare 'Companies Act accounts' using accounting standards other than those issued by the FRC. Please refer to Appendix VI for further details.

6 Individual financial statements that are prepared by a company in accordance with FRS 101 or FRS 102 are Companies Act individual accounts (section 395(1)(a) of the Act), whereas those prepared in accordance with EU-adopted IFRS are IAS individual accounts (section 395(1)(b) of the Act).
AMD 148

Amendment

Paragraph 1.6 amended by Amendments to FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland – Triennial review 2017 – Incremental improvements and clarifications (issued December 2017)

Effective date

01/01/2019

Previous text

1.6 An entity shall apply FRS 103 Insurance Contracts to:

(a) insurance contracts (including reinsurance contracts) that it issues and reinsurance contracts that it holds; and

(b) financial instruments with a discretionary participation feature that it issues.
AMD 149

Amendment

Paragraph 1.7 amended by Amendments to FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland – Triennial review 2017 – Incremental improvements and clarifications (issued December 2017)

Effective date

01/01/2019

Previous text

1.7 When applying IAS 33, IFRS 8 and IFRS 6 Exploration for and Evaluation of Mineral Resources (see paragraph 34.11), references made to other IFRSs within those standards shall be taken to be references to the relevant section or paragraph in this FRS.
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