1.11 Principal differences between IFRS and UK GAAP

Question 1

What major legal development in 2005 affecting UK accounting law?

Answer 1

EU law dictated that UK listed companies must adopt IFRS.

Question 2

How did the FRC implement the transition to an IFRS based framework of accounting in the UK?

Answer 2

Through three new standards for the accounting profession:

• FRS 100 - application of financial reporting requirements
• FRS 101 - reduced disclosure framework
• FRS 102 - the financial reporting standards applicable in the UK and Ireland.