Back to all posts

FRC Issues Amended Accounting Standards

The FRC has issued January 2022 editions of UK and Ireland accounting standards and their Press Release states:

“These editions reflect the amendments made since the previous editions were issued in 2018, as well as changes in Irish company law, resulting in a single up‑to‑date reference point for each standard.

In addition, the FRC has issued revised editions of the Foreword to Accounting Standards and Overview of the financial reporting framework that reflect developments in accounting standards, legislation and regulation.

The documents issued are:

  1. Foreword to Accounting Standards;
  2. Overview of the financial reporting framework;
  3. FRS 101 Reduced Disclosure Framework;
  4. FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland;
  5. FRS 103 Insurance Contracts;
  6. Implementation Guidance to accompany FRS 103 Insurance Contracts;
  7. FRS 104 Interim Financial Reporting; and
  8. FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime.

A new edition of FRS 100 will be issued following changes to this standard expected later this year.”

Regarding FRS 102 in particular (as this is the most commonly used financial reporting framework amongst firms using HAT documentation), FRS 102 (January 2022) should be utilised for accounting periods commencing on or after 1 January 2021 as all interim changes to FRS 102 are incorporated into this version of the Standard.

For accounting periods commencing prior to 1 January 2021, whilst it is sensible to utilise FRS 102 (January 2022) as a single source of all of the measurement and disclosure requirements which apply, regard should be paid to provisions regarding “early adoption” of various measures as set out in FRS 102, Section 1.

It is summarised that FRS 102 (January 2022) updates FRS 102 (March 2018) for the following:

  • Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Multi-employer defined benefit plans issued in May 2019;
  • Amendments to FRS 101 Reduced Disclosure Framework – 2018/19 cycle issued in July 2019;
  • Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Interest rate benchmark reform issued in December 2019;
  • Amendments to FRS 101 Reduced Disclosure Framework – 2019/20 cycle issued in May 2020;
  • Amendment to FRS 101 Reduced Disclosure Framework – Effective date of IFRS 17 issued in October 2020;
  • Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime – COVID-19-related rent concessions issued in October 2020;
  • Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Interest rate benchmark reform (Phase 2) issued in December 2020;
  • Amendments to UK and Republic of Ireland accounting standards – UK exit from the European Union issued in December 2020;
  • Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime – COVID-19-related rent concessions beyond 30 June 2021 issued in June 2021;
  • Editorial amendments to paragraph A4.1 to reflect changes in legislation since the previous edition of FRS 102;
  • Amendments to the footnotes to paragraphs 1A.7, 3.1A and the definition of a small entity, Appendix D to Section 1A Small Entities and Appendix IV Republic of Ireland legal references, to reflect changes introduced by the European Union (Qualifying Partnerships: Accounting and Auditing) Regulations 2019 applicable to qualifying partnerships for accounting periods beginning on or after 1 January 2020; and
  • Some minor typographical or presentational corrections.

Leave a comment

Your email address will not be published. Required fields are marked *