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New UK GAAP application for reporting periods ending 31 December 2016

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16 Dec 2016

For periods beginning on or after 1 January 2015, three new Financial Reporting Standards (FRSs 100, 101 and 102) are in force, bringing with them a number of new options for all UK entities and groups. These new Standards replace old UK GAAP.

For those companies that have not transitioned to the new UK GAAP framework, our 'New UK GAAP' collection of resources, will provide helpful guidance.  For those that are already applying it there are amended versions of FRSs 100, 101 and 102 which incorporate changes as a result of the UK implementation of the EU Accounting Directive to be aware of.  Additionally, there are significant changes to the financial reporting regime for smaller and micro companies who can no longer follow the FRSSE.  These changes are applicable for accounting periods beginning on or after 1 January 2016. 

The table below reflects new and revised new UK GAAP financial reporting requirements that need to be considered for financial reporting periods ending on 31 December 2016 and therefore assumes that reporters have adopted those requirements effective for accounting periods beginning on or after 1 January 2015.  For those reporters who want to understand new UK GAAP application for earlier periods please select one of the following:

Pronouncement Effective date Application for quarters ending 31 December 2016?
1st qtrs.* 2nd qtrs.** 3rd qtrs.*** Full yrs****
FRS 100
Periods beginning on or after 1 January 2016 (see note 4) Mandatory (see note 4) Mandatory (see note 4) Mandatory(see note 4) Mandatory (see note 4)
FRS 101
See note 2 Mandatory (see note 2) Mandatory (see note 2) Mandatory (see note 2) Mandatory (see note 2)
The amendments are available from when an entity applying FRS 101 first applies IFRS 15.  However the change in company law to permit the equity method in individual financial statements is effective from 1 January 2016 (or from 1 January 2015 if it is adopted early). NA (see note 5)/Choice permitted by change in company law optional NA (see note 5)/Choice permitted by change in company law optional NA (see note 5)/Choice permitted by change in company law optional NA (see note 5)/Choice permitted by change in company law optional
The amendments are effective for accounting periods beginning on or after 1 January 2016. Mandatory Mandatory Mandatory Mandatory
FRS 102
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) - see note 3 Mandatory (see note 3) (section 1A optional - see note 1 Mandatory (see note 3) (section 1A optional - see note 1 Mandatory (see note 3) (section 1A optional - see note 1) Mandatory (see note 3) (section 1A optional - see note 1)
These amendments apply for accounting periods beginning on or after 1 January 2017. Early application is permitted with immediate effect provided this is disclosed. Optional Optional Optional Optional
The amendments are effective for accounting periods beginning on or after 1 January 2016. Mandatory Mandatory Mandatory Mandatory
FRS 103
 The amendments are applicable for accounting periods ending on or after 1 January 2016.  Early adoption is not permitted. Mandatory Mandatory Mandatory Mandatory
FRS 105
FRS 105 is effective for periods beginning on or after 1 January 2016. Early adoption is permitted  Optional (see note 1) Optional (see note 1) Optional (see note 1) Optional (see note 1)
Effective for periods beginning on or after 1 January 2016.  Early application is permitted for accounting periods beginning on or after 1 January 2015 Optional (see note 1) Optional (see note 1) Optional (see note 1) Optional (see note 1)

* 1st quarter ending on 31 December 2016 (accounting period began on 1 October 2016).

** 2nd quarter ending 31 December 2016 (accounting period began 1 July 2016).

*** 3rd quarter ending 31 December 2016 (accounting period began 1 April 2016).

**** 4th quarter ending 31 December 2016 (accounting period began 1 January 2016).

Note 1 - For accounting periods beginning on or after 1 January 2016 those previously applying the FRSSE 2015 will either have to follow the recognition and measurement requirements of FRS 102 and the presentation and disclosure requirements within 'Section 1A Small Entities' or apply FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime  (if they qualify as micro-entities).  

Note 2 - The July 2015 amendments to FRS 101 are effective for periods beginning on or after 1 January 2015, other than those arising from revisions to the Accounting Regulations which are effective 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.  

Note 3 - 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).  

Note 4 - FRS 100 does not contain accounting requirements in itself but rather provides direction as to the relevant standard(s) for an entity to apply (whether EU-adopted IFRSsFRS 101FRS 102, or FRS 105). FRS 100 was updated in July 2015 as a result of consequential amendments arising from the implementation of the EU Accounting Directive, introduction of FRS 105 and withdrawal of the FRSSE.  

Entities should apply the version of FRS 100 that corresponds to the edition of FRS 101, FRS 102 or FRS 105 to which they are applying.  For instance if an entity applies the edition of FRS 101 applicable for accounting periods beginning on or after 1 January 2016, it must also apply the revised version of FRS 100 published in July 2015.

Note 5 - IFRS 15 is applicable to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2018. 

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.