FRC defers decision on updating FRS 102 to reflect major changes in IFRSs
30 Jun, 2017
The Financial Reporting Council (FRC) has today published a feedback statement summarising respondents views on its 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).
The consultation, published in September 2016, formed part of the first triennial review of FRS 102 and proposed:
- incremental improvements and clarifications to FRS 102. These have since been published as Financial Reporting Exposure Draft (FRED) 67 Draft Amendments to FRS 102 - Triennial Review 2017 with comments invited until 30 June 2017.
- more significant amendments to FRS 102 to be effective from 1 January 202 including consideration of;
It was proposed that, subject to the responses to the September 2016 consultation, these more significant amendments would be consulted on ‘towards the end of the third quarter of 2017” as phase 2 of its triennial review.
However, following respondents comments, the FRC has decided not to issue an exposure draft of containing proposals for these more significant updates. Although respondents’ feedback showed support for a long‑term aim of broad consistency with IFRSs, they questioned the proposed timetable and suggested more IFRS implementation experience is needed before an assessment of whether, and if so, how and when requirements based on the expected loss model of IFRS 9, IFRS 15 and IFRS 16 should be considered for incorporation into FRS 102. In addition, IFRS 17 Insurance Contracts has been issued since the FRC's consultation took place and the FRC has previously stated that “FRS 103 [Insurance Contracts] would be reviewed once the International Accounting Standards Board (IASB) had completed IFRS 17”.
The FRC has indicated that, at present, there is no target effective date for any changes to FRS 102 or FRS 103 and detailed proposals will be consulted on in due course.
The press release and feedback statement are available on the FRC website.
