The Financial Reporting Council (FRC) is consulting on its proposed approach to updating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, to reflect changes in international financial reporting standards (IFRS) over the last three years (see
The Financial Reporting Council (FRC) is consulting on its proposed approach to updating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, to reflect changes in international financial reporting standards (IFRS) over the last three years (see here).
When FRS 102 was issued in March 2013, the FRC indicated that it would be reviewed every three years. As part of the first triennial review, this consultation proposes making a set of limited incremental changes to be effective from 1 January 2019 and more significant amendments to be effective from 1 January 2022.
The amendments from 1 January 2019 would:
incorporate relevant improvements from the 2015 Amendments to the IFRS for SMEs;
incorporate the control model of IFRS 10 Consolidated financial statements;
update definitions and the fair value hierarchy for greater consistency with IFRS 13 Fair value measurement; and
improve the separation of contracts for the purposes of recognising and measuring revenue, so that it is similar in this regard to IFRS 15 Revenue from contracts with customers. The FRC will consider whether more extensive amendments should be made to FRS 102 to more closely reflect the model of revenue recognition in IFRS 15 as part of the next triennial review.
The amendments from 1 January 2022 would:
incorporate the expected loss model for impairment of financial assets, based on IFRS 9 Financial instruments; and
update lease accounting by lessees for consistency with IFRS 16 Leases.
Comments on the consultation document should be sent by 31 December 2016.
Responses to this consultation will inform the FRC’s work on two separate financial reporting exposure drafts (FREDs), the first of which is expected towards the end of the first quarter of 2017 (incremental improvements and clarifications), and the second towards the end of the third quarter of 2017 (expected loss model and leases).
The Financial Reporting Council (FRC) is consulting on its proposed approach to updating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, to reflect changes in international financial reporting standards (IFRS) over the last three years (see
The Financial Reporting Council (FRC) is consulting on its proposed approach to updating FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, to reflect changes in international financial reporting standards (IFRS) over the last three years (see here).
When FRS 102 was issued in March 2013, the FRC indicated that it would be reviewed every three years. As part of the first triennial review, this consultation proposes making a set of limited incremental changes to be effective from 1 January 2019 and more significant amendments to be effective from 1 January 2022.
The amendments from 1 January 2019 would:
incorporate relevant improvements from the 2015 Amendments to the IFRS for SMEs;
incorporate the control model of IFRS 10 Consolidated financial statements;
update definitions and the fair value hierarchy for greater consistency with IFRS 13 Fair value measurement; and
improve the separation of contracts for the purposes of recognising and measuring revenue, so that it is similar in this regard to IFRS 15 Revenue from contracts with customers. The FRC will consider whether more extensive amendments should be made to FRS 102 to more closely reflect the model of revenue recognition in IFRS 15 as part of the next triennial review.
The amendments from 1 January 2022 would:
incorporate the expected loss model for impairment of financial assets, based on IFRS 9 Financial instruments; and
update lease accounting by lessees for consistency with IFRS 16 Leases.
Comments on the consultation document should be sent by 31 December 2016.
Responses to this consultation will inform the FRC’s work on two separate financial reporting exposure drafts (FREDs), the first of which is expected towards the end of the first quarter of 2017 (incremental improvements and clarifications), and the second towards the end of the third quarter of 2017 (expected loss model and leases).
