The paper is an update of a previous paper published in January 2014 to reflect:

• additional commentary in relation to non-interest bearing loans;
• updated commentary on the application of the Disregard Regulations and Change of Accounting Practice Regulations, reflecting the changes made to these statutory instruments in December 2014;
• updated accounting commentary to reflect the amendments to FRS 102 issued in August 2014 and July 2015; and
• updates for any commentary specific to section 1A of FRS 102. 

The paper does not reflect:

• amendments to FRS 102 - Pension Obligations issued in February 2015;
• the requirements of FRS 104 - Interim Financial Reporting; and
• proposed changes to the tax rules, for example changes to the loan relationship and derivative contract rules and changes to the intangibles legislation included in the summer finance bill 2015.

As before it is split into two sections:

• The first section provides a comparison of the accounting and tax differences between ‘old’ UK GAAP and FRS 102
• The second section provides a summary of the key accounting and tax considerations upon transition.  

The paper, which is also relevant for small companies who elect to apply Section 1A of FRS 102, includes 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 102 is one of the three main standards that were introduced as a package to replace 'old' UK GAAP.  It must be applied for accounting periods beginning on or after 1 January 2015, with early adoption available, subject to certain conditions.  The July 2015 amendments to FRS 102 are applicable for periods beginning on or after 1 January 2016, with early adoption permitted and required if and only if the entity is early adopting the new Accounting Regulations (or from 1 January 2015 if the entity is not subject to company law).

For companies that transition from Old UK GAAP to FRS 101 a separate paper providing an overview of the key accounting and tax considerations was published in January 2014.

Click for:

• FRS 102 Overview Paper: Tax implications (link to HMRC website)
• Our previous UK Accounting Plus news item