The FRC is seeking views to inform the periodic review of FRS 102
Anne Adrain summarises how you can help shape the FRC periodic review of FRS 102.
UK and Ireland accounting standards are subject to periodic reviews, at least every five years, to ensure they remain up-to-date and continue to require high-quality and cost-effective financial reporting from entities within their scope.
The UK Financial Reporting Council (FRC) is starting the next periodic review of FRS 102, along with other UK and Ireland accounting standards.
Part of this process is seeking views from stakeholders on areas that might be considered as part of the review. This might include new issues/transactions that should be addressed, or comments or suggestions in relation to the current requirements. In addition to stakeholder feedback the review will consider recent developments in financial reporting (such as changes in IFRS) and relevant developments in the wider reporting framework.
Any changes to accounting standards that are proposed as a result of the periodic review will be subject to public consultation at a later date, not expected to be before 2022. The effective date for any amendments is currently expected to be 1 January 2024.
Stakeholders can provide comments on any aspect of the standards to firstname.lastname@example.org by 31 October 2021.
The FRC also expects to hold roundtable events for stakeholders to provide their views. Further details will be provided in due course.
The last periodic review, the Triennial review 2017, started with a request for feedback in March 2016.
The final amendments were issued in December 2017, with an effective date of 1 January 2019. Those amendments responded to stakeholder feedback and considered recent improvements in financial reporting. They aimed to balance improvements in the quality of financial reporting with maintaining stability, improving the usability of FRS 102 and improving the cost-effectiveness of FRS 102.
UK and Ireland accounting standards comprise:
- FRS 100 Application of Financial Reporting Requirements;
- FRS 101 Reduced Disclosure Framework;
- FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland;
- FRS 103 Insurance Contracts; and
- FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime.