FRS 102 is a financial reporting standard. It sets out the measurement and recognition rules as well as the disclosure requirements that apply to entities who apply the standard.
The Financial Reporting Standard (FRS) 102 has been updated in several areas, including:
Fair value measurement
The guidance for fair value measurement has been updated to align with IFRS 13. This includes changes to the definition of a market, transaction costs, and valuation techniques.
Revenue recognition
A new model for revenue recognition has been introduced, based on IFRS 15’s five-step mode.
Lease accounting
A new model for lease accounting has been introduced, based on IFRS 16’s on-balance sheet model.
Investment property
A new paragraph has been added to clarify how to determine whether an acquisition is an asset, a group of assets, or a business combination.
Share-based payments
The scope of share-based payment accounting has changed. This includes how to account for transactions with a choice of settlement, and how to treat vesting condition.
Contract costs
The accounting for contract costs has been amended, which may impact contract margins in long-term contracts. Other areas that have been updated include business combinations, uncertain tax positions, and the statement of cash flows.
Are you and your business ready for the changes?
We are extremely lucky to have Amelia MacPherson, UK Director of RSM holding a seminar at financeSHOWCASE called ‘Updates to FRS 102: is your business ready?’. As some of the biggest changes to UK GAAP are coming in a few years as the current revenue and leasing standards are completely overhauled, Amelia uses her experience to give attendees an overview of the changes, and some key things to consider to help your business get prepared.
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