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Amendments to UK GAAP

The FRC has issued three sets of amendments to UK accounting and reporting standards, and their Press Release states:

“The amendments address some topical issues, and maintain a necessary alignment with international standards.

The amendments are:

  • Amendment to FRS 101 – Effective date of IFRS 17 – which changes the effective date of an amendment to the definition of a qualifying entity, effectively allowing relevant insurers to continue to apply FRS 101 for a further two years. The revised effective date for the new definition of a qualifying entity is accounting periods beginning on or after 1 January 2023;
  • Amendments to FRS 102 and FRS 105 – COVID-19-related rent concessions – which sets clear requirements for recognising changes in operating lease payments arising from COVID-19-related rent concessions on a systematic basis over the periods the change in lease payments is intended to compensate. These amendments are effective for accounting periods beginning on or after 1 January 2020, with early application permitted; and
  • Amendments to FRS 104 – Going concern – which clarifies and enhances requirements relating to the going concern basis of accounting in respect of interim financial reports. These amendments are effective for interim periods beginning on or after 1 January 2021, with early application permitted.”

The most significant of these amendments is confirmation of the treatment of Covid-19 related rent concessions. The treatment above is consistent with our existing guidance contained in our Q3 and Q4 CPD Updates.