27/03/2013

27/03/2013

Future of UK and Irish GAAP

The publication of Financial Reporting Standard 102 (FRS 102) by the UK Financial Reporting Council (FRC) on 14 March 2013 marks a significant change in accounting standards that will become applicable in Ireland and the UK. FRS 102 is the third and most important of the standards issued by the FRC that form new UK and Irish GAAP. These are:- FRS 100           Application of Financial Reporting Requirements FRS 101           Reduced Disclosure Framework FRS 102           The Financial Reporting Standard applicable in the UK and ROI New UK and Irish GAAP is mandatory for annual periods beginning on or after 1 January 2015 (but can be adopted early) and affords companies a number of options in relation to the accounting framework they use in preparing their financial statements. The changes will affect accounting issues such as the treatment of goodwill, defined benefit pension plans, deferred tax, borrowing and development costs and derivatives. It is expected that the vast majority of Irish companies will decide to use FRS 102 to prepare their financial statements from the effective date.