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.

FRC consults on changes to FRS 102 to reflect recent changes in IFRS

  • FRC Image

27 Sep 2016

The Financial Reporting Council (FRC) has today published a Consultation Document containing proposals to update Financial Reporting Standard (FRS) 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ to reflect recent changes in International Financial Reporting Standards (IFRSs).

When FRS 102 was first issued by the FRC, the FRC indicated that the standard would be reviewed every three years.  This consultation is the first triennial review of the standard.

The Consultation Document proposes that limited amendments be made to FRS 102 to be effective from 1 January 2019.  Detailed proposals for these will be consulted on towards the end of the first quarter of 2017 in Financial Reporting Exposure Draft (FRED) Triennial review 2017 Phase 1 – Incremental improvements and clarifications.  These include amendments to:

  • incorporate relevant improvements from the 2015 Amendments to the IFRS for SMEs;
  • incorporate the control model of IFRS 10 Consolidated Financial Statements;
  • update definitions and the fair value hierarchy for greater consistency with IFRS 13 Fair Value Measurement; and
  • improve the separation of contracts for the purposes of recognising and measuring revenue, so that it is similar in this regard to IFRS 15 Revenue from Contracts with Customers.

Additionally, the Consultation Document proposes more significant amendments be made to FRS 102 to be effective from 1 January 2022.  Detailed proposals for these will be consulted on towards the end of the third quarter of 2017 in FRED Triennial review 2017 Phase 2 – Expected loss model and leases.  These include amendments to:

  • incorporate the expected loss model for impairment of financial assets, based on IFRS 9 Financial Instruments; and
  • update lease accounting by lessees for consistency with IFRS 16 Leases.

Comments on the Consultation Document are requested by 31 December 2016.  The press release and consultation document are available on the FRC website. 

Need to know on this consultation can be found here.

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.