Change is coming – overview of FRS 102 and its effects
Lisa Weaver FCA is an author and commentator on financial reporting and governance issues. She is a teaching fellow at Aston Business School and has written a number of online courses including “Understanding the new UK and Ireland GAAP”, “Getting to grips with FRS 102”, and “Managing the Transition to new UK GAAP”.
Over the next 12 months accountants must prepare themselves and their clients for a fundamental change in the way companies and other reporting entities report their financial results.
From 1 January 2015, most companies and other reporting entities in the UK and the Republic of Ireland (RoI) will be faced with reporting their financial information under a brand new financial reporting regime. Almost all of our existing generally accepted accounting practice (GAAP) will be replaced by three new financial reporting standards: FRS 100, FRS 101 and FRS 102. The Financial Reporting Council is also reviewing the financial reporting standard for smaller entities (FRSSE), and expects to issue revised accounting requirements for small entities to align with the new EU accounting directive on micro-entities (see EU Directive 2012/6/EU).
- The reporting burden may be reduced under FRS 102.
- A summary of the main areas of impact of the new standard.
- Starting dates and transferring to the new accounting practice.
In a recent edition of Financial Accountant from the IFA, accountingcpd.net author Lisa Weaver highlights the main areas of impact of the new standards.accountingcpd. Read the full article as a PDF here.