Background

Since 2005 listed groups in the UK have been required to prepare their consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs). Almost all other groups and companies have a choice. They can choose to follow IFRSs or UK GAAP. Small companies (as defined by the Companies Act 2006) have an additional option of following the Financial Reporting Standard for Smaller Entities (FRSSE). But, for periods beginning on or after 1 January 2015, three new Financial Reporting Standards (FRS 100, 101 and 102) will be in force, bringing with them a number of new options for all UK entities and groups. 

The three new FRSs have been developed by the Accounting Standards Board (‘ASB', the predecessor of what is now the Accounting Council of the FRC) to replace current UK GAAP (other than the FRSSE, which will be retained) and introduce an IFRS-based reduced disclosure framework for certain entities. 

Current status of the project

FRS 100, FRS 101 and FRS 102 have been issued by the FRC and are applicable for accounting periods beginning on or after 1 January 2015 with earlier application permitted.