The Financial Reporting Council (FRC) has issued FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. Following the publications of FRS 100 and 101, FRS 102 completes a suite of accounting standards that put the UK and leading edge of financial reporting.
FRC issues FRS 102
The ability to pick and choose the accounting framework on subsidiary-by-subsidiary basis will be important in allowing companies to mitigate the impact of such effects – choosing the right accounting framework for each company. Changing the basis of accounting for company financial statements may have wide-ranging effects, including impacts of taxation, distributable reserves and debt covenants.
The FRSs will be effective from 1 January 2015, but may be adopted early for accounting periods ending on or after 31 December 2012.
