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

Changes to new draft SORP on Further and Higher Education following consultation responses

08 Jan, 2014

The technical working party of The Further and Higher Education SORP Board (“the SORP Board”) has proposed some key changes to their original Exposure Draft ("ED") of a revised Statement of Recommended Practice (SORP) which sets out proposals for accounting for further and higher education institutions in the UK. Whilst the majority of the proposals contained within the original ED were supported by respondents, a number of respondents did not support the proposals for recognition of government grants.

FRC publishes Staff Education Notes for users of FRS 102

18 Dec, 2013

The UK Financial Reporting Council (FRC) has today published fifteen Staff Education Notes (SEN), which illustrate certain requirements of FRS 102 for the convenience of its users.

FRC issues draft response to the IASB's proposed changes to the IFRS for SMEs

17 Dec, 2013

The UK Financial Reporting Council (FRC) has issued for comment a draft response to the IASB's proposed changes to the IFRS for SMEs, issued in October 2013. The FRC has asked for comments on this proposed response by 24 January 2014.

FRC publishes draft updates to FRS 101 Reduced Disclosure Framework

17 Dec, 2013

The UK Financial Reporting Council (FRC) has today published an exposure draft of its first set of annual amendments to FRS 101, the Reduced Disclosure Framework available to UK subsidiary companies that wish to apply the recognition and measurement requirements of IFRSs in their financial statements.

Comments invited on new draft SORP for registered social housing providers

11 Dec, 2013

The National Housing Federation (NHF) has published an Exposure Draft (ED) on a revised Housing Statement of Recommended Practice (“the Housing SORP”) setting out revised proposals for accounting for registered social housing providers in the UK.

Need to know — New requirements for micro-companies now in place

10 Dec, 2013

This edition of 'Need to know' outlines the impact of the new Micro-Entities' Accounts Regulations recently finalised by the UK government, as well as the changes to the Financial Reporting Standard for Smaller Entities (FRSSE) proposed by the UK Financial Reporting Council (FRC) as a consequence of the new Regulations.

FRC issues draft amendments to the FRSSE

10 Dec, 2013

The Financial Reporting Council (FRC) has today issued an Exposure Draft (FRED 52) containing proposed amendments to the Financial Reporting Standard for Smaller Entities (FRSSE) as a result of The Small Companies (Micro-Entities’ Accounts) Regulations 2013 (SI 2013/3008) (“the Regulations”).

Stay Tuned Online — IFRS and UK GAAP update November 2013

09 Dec, 2013

The following topics are covered in the November 2013 webcast: 1 - findings from our 2013 annual reporting survey, 2 - changes to IFRS 9 – hedge accounting, 3 - year-end reminders, including narrative reporting and 4 - latest IFRS and UK GAAP developments.

Stay Tuned Online – IFRS and UK GAAP update

09 Dec, 2013

The Deloitte London IFRS Centre of Excellence is running a series of hour-long Internet-based financial reporting updates, aimed at helping finance teams keep up to speed with IFRSs and other financial reporting issues. The November 2013 webcast is now available.

Approval of new requirements for micro-companies

02 Dec, 2013

The Small Companies (Micro-Entities’ Accounts) Regulations 2013 (SI 2013/3008) (“the Regulations”), which introduce a number of deregulatory measures for micro-companies have now been approved. For periods ending on or after 30 September 2013 (provided that accounts for such periods have not yet been filed), companies eligible to follow the new Regulations are able to prepare and file ‘abridged’ accounts.

We comment on new draft SORP for Further and Higher Education.

19 Nov, 2013

We have published our comment letter on the Further and Higher Education SORP Board’s Exposure Draft (ED) on a revised Statement of Recommended Practice (SORP) setting out proposals for accounting for Further and Higher Education institutions in the UK (“the Further and Higher Education SORP”). We support the proposed revisions contained within the draft Further and Higher Education SORP but also highlight a number of ways in which it can be improved.

Deloitte comment letter on Further and Higher Education SORP

19 Nov, 2013

We have published our comment letter on the Further and Higher Education SORP Board’s Exposure Draft (ED) on a revised Statement of Recommended Practice (SORP) setting out proposals for accounting for Further and Higher Education institutions in the UK (“the Further and Higher Education SORP”). We support the proposed revisions contained within the Further and Higher Education SORP but also highlight a number of ways in which it can be improved.

Choosing your GAAP

19 Nov, 2013

This publication will help you to assess the new financial reporting frameworks available in the UK, identifying key accounting differences and their associated tax impacts, as well as frequently asked questions and a broader consideration of the impact of changing GAAP.

ukGAAP 2014: UK GAAP in your pocket — a guide to FRS 102

19 Nov, 2013

Focusing in particular on the replacement for current UK GAAP, FRS 102, this pocket guide provides a comprehensive overview of the requirements of each section of FRS 102 and highlights key GAAP differences compared to both existing UK GAAP and EU-adopted IFRSs effective for periods beginning on/after 1 January 2013. The guide additionally includes a comparison with certain IFRSs which are not yet mandatorily effective in the UK until 1 January 2014 but which may be relevant if you are considering your GAAP choice now.

The transition to ‘new’ UK GAAP — Key decisions to be made by 1 January 2014

19 Nov, 2013

This publication from Deloitte discusses some key considerations that management may wish to consider in transitioning to 'new' UK GAAP.

EBITDA definition clarified for Higher Education sector

17 Nov, 2013

A note clarifying how Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) should be calculated by entities in the Higher Education (HE) Sector has been issued by members of the British Universities Finance Directors Group (BUFDG).

We comment on FRED 50

17 Nov, 2013

We have published our comment letter on Financial Reporting Exposure Draft (FRED) 50: Draft FRC Abstract 1 Residential Management Companies’ Financial Statements and Consequential Amendments to the Financial Reporting Standard for Smaller Entities (FRSSE) (“FRED 50”).

Deloitte comment letter on FRED 50

17 Nov, 2013

We have published our comment letter on Financial Reporting Exposure Draft (FRED) 50: Draft FRC Abstract 1 Residential Management Companies’ Financial Statements and Consequential Amendments to the Financial Reporting Standard for Smaller Entities (FRSSE) (“FRED 50”).

Robert Bruce interviews — The financial instrument accounting impact of FRS 102 and FRED 51

15 Nov, 2013

Robert Bruce interviews Kush Patel, director and financial instruments specialist at Deloitte, on the financial instrument accounting impact of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and FRED 51 'Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland: Hedge Accounting'.

FRC proposes hedge accounting amendments to FRS 102

15 Nov, 2013

The Financial Reporting Council (FRC) has today issued Financial Reporting Exposure Draft (FRED) 51: ‘Draft amendments to FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland: Hedge Accounting’. The amendments widen the eligibility criteria for hedge accounting and introduce less onerous qualification criteria. Comments are invited by the FRC until 14 February 2014.

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