Chapter 25 UK GAAP

Question 1

1.1 Recent changes to UK GAAP

Answer 1

The FRC decided to align UK GAAP with IFRS Standards by issuing the following standards, which completely replace all previous standards:
- FRS 100 Applications of Financial Reporting Requirements
- FRS 101 Reduced Disclosure Framework
- FRS 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland
FRS 101 allows companies that are part of a group preparing consolidated accounts under IFRS Standards to take certain disclosure exemptions in their individual accounts. FRS 102 is a single financial reporting standard that applies to the financial statements of entities not applying EU-adopted IFRS Standards. It is based on the IFRS for SMEs Standard, which is in itself a simplification of full IFRS Standards.
The differences between IFRS standards and FRS 102 and the main exemptions under FRS 101 are: