FRS 102- need to know more?
In our FRS 102- need to know more? series we will look at some of the individual sections of the standard in detail to address some of the common questions raised by users of the standard. These can be accessed through the below buttons.
Whilst we hope that the questions are beneficial to you, they are not a substitute for reading the relevant accounting standards in full and are not intended to replace the accounting standards. Users of these questions should be aware that different facts and circumstances may exist in relation to similar accounting matters which may significantly change the financial reporting implications, and as a result, these FAQs do not represent a "one size fits all" solution to financial reporting issues.
Accounting policies, estimates and errors
Accounting policies, estimates and errors
Section 10 of FRS102 looks at accounting policies, estimates and the correction of errors
Inventories
Section 13 sets out the accounting requirements for inventories
Impairment
When impairment indicators are present, section 27 deals with the accounting rules
Post balance sheet events
Post balance sheet events
Events after the year end may be "adjusting" or "non-adjusting" under section 32
Borrowing costs
An entity may be able to adopt a capitalisation policy for borrowing costs under section 25
Government grants
An entity may apply the performance or accruals model for grants under section 24
Investment property
Assets meeting the definition of an investment property must apply section 16
Readers may also be interested in our financial reporting FAQs which can be accessed below.
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.
While FRS 102 is a widely used accounting standard across the UK and Ireland, it is not the only applicable standard that an entity may apply. Other standards which may be used (provided they are not specifically disallowed) include adopted IFRS, FRS 101 and FRS 105.
How is FRS 102 structured?
There are 35 sections in FRS 102, each dealing with specific accounting areas.
When did FRS 102 become effective?
FRS 102 became applicable for accounting periods commencing on or after 1 January 2015, with early adoption permitted for accounting periods ending on or after 31 December 2012.
FRS 102 replaced accounting standards applicable in the UK and Republic of Ireland with a single FRS developed from the IFRS for SMEs. FRS 102 applies to general-purpose financial statements and the financial reporting of entities including those that are not constituted as companies and those that are not profit-oriented. FRS 102 applies to the financial statements of entities that are not applying EU-adopted IFRS, FRS 101 or FRS 105.
Who is responsible for drafting and maintaining FRS 102?
The Financial Reporting Council (FRC) are responsible for setting and maintaining FRS 102. The standard is also subject to periodic review and this involves a consultation period with stakeholders.
Where can I access FRS 102?
This can be accessed from the FRC website.
These pages are provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.
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