UK issuers of shares or debt securities that are only admitted to trading on EEA regulated markets are no longer subject to this framework. They can use EU-adopted IAS for accounting periods starting before January 2021. Impact assessments and feedback statements have been issued alongside the relevant standard or amendment to a standard. On 13 December 2018 the FRC issued a suite of staff factsheets on aspects of FRS 102, including the 2017 triennial review. The factsheets are intended to assist stakeholders by highlighting certain requirements of FRS 102. The ICAEW Library can give you the right information from trustworthy, professional sources that aren’t freely available online.
Financial Reporting Standards (FRSs)
FRS 100 Application of Financial Reporting Requirements sets out the financial reporting regime for the UK and Republic of Ireland. The Financial Reporting Standards FRS 100, 101, 102 and 103 (known as new UK GAAP) are effective from 1 January 2015. These FRSs replace previous standards, for reporting periods starting on or after 1 January 2015. Whereas accounting standards were previously set by the ASB, this became the responsibility of the FRC Board on 2 July 2012.
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This material may provide useful background information on particular standards and amendments, their origins, and any controversy that may have surrounded them. This foreword explains the scope, authority and identification of accounting standards, issued by the FRC. It does not apply to financial statements prepared in accordance with adopted IFRS (for companies these are referred to in UK company law as ‘IAS accounts’ and in Irish company law as ‘IFRS financial statements’). UK Generally Accepted Accounting Practice (UK GAAP) is the body of accounting standards published by the UK’s Financial Reporting Council (FRC). From this hub you can find a synopsis of each standard and details of recent amendments. Plus, access practical resources including factsheets, guides, webinars and events, and other guidance material to support implementation.
The Financial Reporting Standard for Smaller Entities will continue to be available for those that qualify to use it and will remain fundamentally unaltered for the time being. A new financial reporting framework came into effect in the UK on 1 January 2015. Where a new standard is to be proposed, a Financial Reporting Exposure Draft (FRED) is released for comment. The standard in final form is only issued when comments have been incorporated or addressed.
Over the years, the FRC and its former subsidiary body, the ASB, have published a wide range of auxiliary material providing commentary, guidance, and context around UK accounting standards. The Recommendations on Accounting Principles were the UK’s first authoritative guidance on accounting questions, issued by ICAEW between 1942 and 1969. The Recommendations were non-mandatory, and were superseded from the 1970s onwards by mandatory accounting standards, initially in the form of SSAPs. For some time, SSAPs sat alongside the Recommendations, though most of the latter had been withdrawn by the time Technical Release 391 was published in 1980.
UK Accounting Standards (overview)
Below, we provide a high-level overview of some key auxiliary material on UK accounting standards which has been produced by relevant parties. Statements of Standard Accounting Practice (SSAPs) were the previous generation of accounting standards, prior to FRSs. See the evidence in an audit timeline below for more information on the history of these standards. This overview describes the financial reporting framework applicable for accounting periods beginning on or after 1 January 2021. FRS 100 sets out the financial reporting requirements for UK and Republic of Ireland entities.
- Whilst a number of SORPs are still in force, others have been withdrawn or superseded.
- UK companies with a presence in an EEA country – for example, a branch – need to check the reporting requirements in that country.
- This material may provide useful background information on particular standards and amendments, their origins, and any controversy that may have surrounded them.
- FRS 104 is intended for use in the preparation of interim reports by entities that apply FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland when preparing their annual financial statements.
The Urgent Issues Task Force (UITF) was part of the previous standard-setting regime. It assisted the ASB by investigating areas where conflicting or unsatisfactory interpretations of accounting standards or Companies Act provisions existed, or had the potential to arise. The acronym GAAP stands for ‘Generally Accepted Accounting Practice’ — or, alternatively, ‘Generally Accepted Accounting Principles’ or ‘Generally Accepted Accounting Policies’. GAAP is a term used to describe the rules generally accepted as being applicable to accounting practices as laid down by standards, legislation or upheld by the accounting profession. How companies incorporated in the UK, or where the parent company is incorporated in the UK, can comply with UK accounting and reporting requirements.
Standards are amended periodically in response to particular issues or regular reviews. Read the terms of use for the financial reporting standards available from the FRC. There are a number of publications which outline the similarities and differences between UK GAAP and other sets of accounting standards.