UK GAAP

Since 2005 listed groups in the UK have been required to prepare their consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs). Almost all other groups and companies have a choice. They can choose to follow IFRSs or UK GAAP. 

For periods beginning on or after 1 January 2015, FRSs 100101 and 102 came into force, bringing with them a number of new options for all UK entities and groups. These Standards replaced old UK GAAP.

In addition to the above three Standards, two additional Standards were in force from 1 January 2015 - FRS 103 Insurance Contracts which contains specific accounting requirements for entities that have insurance contracts (including reinsurance contracts) and are applying FRS 102 and FRS 104 Interim Financial Reporting, which is intended for use in the preparation of interim financial reports by those entities that apply FRS 102FRS 105 The Financial Reporting Standard applicable to the Micro Entities Regime is a financial reporting standard applicable to entities able to apply the micro entities regime. 

Companies who operate within specialised industries or sectors will also apply the requirements of their specific Statement of Recommended Practice (SORP) in conjunction with the Financial Reporting Standards.  Most of the various SORP-issuing bodies have revised their SORPs in the light of FRS 102.

As the UK GAAP regime has now been in place for a number of years, preparation of either parent company or subsidiary accounts under either FRS 101 or FRS 102 should now have become a routine exercise. 

Amendments have been made to FRS 102 in relation to phase 2 of the interest rate benchmark reform and also in relation to accounting for temporary rent concessions for operating leases occurring as a direct consequence of the COVID-19 pandemic extending beyond 30 June 2021 (for which an amendment was also made to FRS 105). Amendments to FRS 101, FRS 102, FRS 104 and FRS 105 have also been made to reflect changes in company law following the UK's exit from the European Union and to FRS 101 as a result of the 2020/21 annual review of the standard.

The news articles and publications below - organised chronologically - provide a comprehensive collection of resources on the UK GAAP framework.

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Related Resources

FRC publishes March 2018 editions of accounting standards to reflect triennial review amendments

29 Mar, 2018

The Financial Reporting Council ("FRC") has issued the March 2018 editions of all UK and Ireland accounting standards. These editions reflect the triennial review amendments issued in December 2017, and other amendments made since the previous editions were issued, resulting in a single up to date reference point for each standard.

Charity Commission and OSCR issue consultation proposing amendments to the Charities SORP (FRS 102) as a result of changes to UK Accounting Standards

23 Feb, 2018

The Charity Commission for England and Wales (‘Charity Commission’) and the Office of the Scottish Charity Regulator (OSCR) have issued a joint consultation on proposed amendments to the Charities Statement of Recommended Practice (FRS 102) (‘Charities SORP FRS 102) following amendments to UK accounting standards in December 2017 which formed part of the 2017 Triennial review of the standard by the Financial Reporting Council (FRC).

Need to know — Accounting for the effects of the U.S. tax reform legislation

29 Jan, 2018

On 22 December 2017, the U.S. tax legislation commonly known as the Tax Cuts and Jobs Act was signed into law by the president. As a result, recognition of the tax effects of the Act is required in the interim and annual periods that include 22 December 2017. This newsletter looks at the accounting for the effects of the Act under IAS 12 Income Taxes and the implications for FRS 101 and FRS 102.

Need to know — FRC publishes Triennial Review 2017 Incremental improvements and clarifications (Amendments to FRS 102)

25 Jan, 2018

The Financial Reporting Council (FRC) has published incremental improvements and clarifications to FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

Accounting Roundup January 2018

24 Jan, 2018

This accounting roundup, covering the period November 2017 through to December 2017, pulls together the headlines for all the latest developments in accounting, providing links to a wealth of further information and resources.

FRC updates taxonomies to reflect recent changes to UK GAAP

18 Dec, 2017

The Financial Reporting Council (FRC) has published amendments to its suite of taxonomies last published in December 2015.

FRC publishes amendments to FRS 102

15 Dec, 2017

The Financial Reporting Council (FRC) has published incremental improvements and clarifications to (FRS) 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’. The FRC indicates that “as a result of these amendments, FRS 102 will be clearer and easier to use, some accounting policies will be simplified and additional choices and exemptions will be introduced”.

HMRC consults on changes to lease taxation as a result of IFRS 16

05 Dec, 2017

HMRC has issued a consultation on the legislative changes required to ensure that the tax treatment of leases reflects lease accounting rules upon the implementation of IFRS 16 ‘Leases’.

Accounting Roundup - Closing Out 2017

27 Nov, 2017

Closing out 2017 discusses the significant corporate reporting issues relevant to 31 December 2017 annual reports, covering areas of regulatory focus identified in the FRC’s Annual Review of Corporate Reporting 2016/2017, ESMA’s common enforcement priorities for issuers in the European Union together with developments in reporting standards and areas of investor interest.

New UK GAAP application for reporting periods ending 31 December 2017

27 Nov, 2017

The table below reflects new and revised new UK GAAP financial reporting requirements that need to be considered for financial reporting periods ending on 31 December 2017

Accounting roundup - November 2017

03 Nov, 2017

This accounting roundup, covering the period August 2017 through to October 2017, pulls together the headlines for all the latest developments in accounting, providing links to a wealth of further information and resources.

FRC consults on amendments to FRS 101

30 Oct, 2017

The Financial Reporting Council (FRC) has issued, for comment Financial Reporting Exposure Draft (FRED) 69 proposing no amendments to FRS 101 ‘Reduced Disclosure Framework’.

Deloitte comment letter on FRED 68 — 'Draft amendments to FRS 102 - Payments by subsidiaries to their charitable parents that qualify for gift aid'

17 Oct, 2017

We have published our comment letter on the Financial Reporting Council’s (FRC’s) Financial Reporting Exposure Draft (FRED) 68 ‘Draft amendments to FRS 102 - Payments by subsidiaries to their charitable parents that qualify for gift aid'. Overall we agree with the draft amendments to FRS 102 as set out in FRED 68 except that early application should be permitted without the need to apply all of other triennial review amendments at the same time.

We comment on FRED 68 — 'Draft amendments to FRS 102 - Payments by subsidiaries to their charitable parents that qualify for gift aid'

17 Oct, 2017

We have published our comment letter on the Financial Reporting Council’s (FRC’s) Financial Reporting Exposure Draft (FRED) 68 ‘Draft amendments to FRS 102 - Payments by subsidiaries to their charitable parents that qualify for gift aid'.

New UK GAAP application for reporting periods ending 30 September 2017

02 Oct, 2017

The table below reflects new and revised new UK GAAP financial reporting requirements that need to be considered for financial reporting periods ending on 30 September 2017

FRC proposes amendments to FRS 102 in relation to gift aid payments made by a subsidiary to its charitable parent

20 Sep, 2017

The Financial Reporting Council (FRC) has today proposed amendments to Financial Reporting Standard (FRS) 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ in relation to the accounting for gift aid payments made by a subsidiary to its charitable parent.

FCA publishes a note relating to FRS 102 cash flow exemption for investment funds

04 Sep, 2017

The Financial Conduct Authority (FCA) has issued a note regarding the use of the FRS 102 cash flow exemption for investment funds that meet certain conditions when preparing audited financial information to include within a prospectus.

Accounting roundup - August 2017

23 Aug, 2017

This accounting roundup, covering the period May 2017 through to July 2017, pulls together the headlines for all the latest developments in accounting, providing links to a wealth of further information and resources.

HMRC publishes paper on the tax implications of FRS 105

21 Jul, 2017

HM Revenue and Customs has published a paper which provides an overview of the key accounting changes and the key tax considerations of moving from the Financial Reporting Standard for Smaller Entities (FRSSE) or ‘old’ UK GAAP to FRS 105 ‘The Financial Reporting Standard applicable to the Micro-entities Regime’.

FRC issues amendments to FRS 101

12 Jul, 2017

The Financial Reporting Council (FRC) has issued amendments to FRS 101 ‘Reduced Disclosure Framework’.

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