FRS 102 “The Financial Reporting Standard Applicable in the UK and Republic of Ireland” is a single coherent financial reporting standard replacing old UK GAAP. Derived from the IFRS for SMEs, the Financial Reporting Council has made significant modifications to address company law requirements and incorporate additional accounting options.
FRS 102 differs from old UK GAAP in a number of respects, including accounting requirements for goodwill and intangible assets, group defined benefit schemes and deferred tax. It also contains extensive guidance on accounting for financial instruments, including derivatives.
Qualifying entities may take advantage of certain disclosure exemptions, including an exemption from preparation of a cash flow statement and related notes.