This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

HMRC publishes papers on the tax implications of FRS 101 and FRS 102

  • UKGAAP Image

23 Jan 2014

HM Revenue and Customs has published two papers which provide an overview of the key accounting changes and the key tax considerations of moving from ‘old’ UK GAAP to either FRS 101 or FRS 102.

The papers are split into two sections: 

  • The first section provides a comparison of the accounting and tax differences between ‘old’ UK GAAP and either FRS 101 ’Reduced disclosure framework’ or FRS 102 ‘The financial reporting standard applicable in the UK and the Republic of Ireland’.
  • The second section provides a summary of the key accounting and tax considerations upon transition. 

The papers highlight that the transition to either FRS 101 or FRS 102 “will impact upon the accounts in two key ways”: 

Assets and liabilities at the accounting transition date will be identified, recognised and measured in line with the requirements of the new standards; and 

Thereafter profits and losses will be recognised in accordance with the new standards. These may differ from those profits and losses that would have been reported had Current UK GAAP been retained. 

The papers include the requirements of the law as they stood at the date of the publication.  HMRC intend to update the papers “as further information is available and as new accounting standards and tax law develop”.   

FRS 101 and FRS 102 are two of the three main standards that were introduced as a package to replace 'old' UK GAAP.  They must be applied for accounting periods beginning on or after 1 January 2015, with early adoption available, subject to certain conditions.  

Click for:

Resources on UK Accounting Plus on UK GAAP:

Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.