Background

Since 2005 listed groups in the UK have been required to prepare their consolidated financial statements in accordance with International Financial Reporting Standards (IFRS Accounting Standards). Almost all other groups and companies have a choice. They can choose to follow IFRS Accounting Standards or UK GAAP.  For further guidance on IFRS in the UK see our dedicated page.

For periods beginning on or after 1 January 2015, FRSs 100, 101 and 102 came into force, bringing with them a number of new options for all UK entities and groups. These Standards replaced old UK GAAP.

In addition to the above three Standards, two additional Standards were in force from 1 January 2015 - FRS 103 Insurance Contracts which contains specific accounting requirements for entities that have insurance contracts (including reinsurance contracts) and are applying FRS 102 and FRS 104 Interim Financial Reporting, which is intended for use in the preparation of interim financial reports by those entities that apply FRS 102.  FRS 105 The Financial Reporting Standard applicable to the Micro Entities Regime is a financial reporting standard applicable to entities able to apply the micro entities regime. 

Companies who operate within specialised industries or sectors will also apply the requirements of their specific Statement of Recommended Practice (SORP) in conjunction with the Financial Reporting Standards.  

In addition to the above Standards, the FRC has published Staff Factsheets which illustrate certain requirements of FRS 102 for the convenience of its users.