FRS 102 Overview
Financial Reporting Standard 102, or FRS 102, is a financial accounting standard published by the Financial Reporting Council, and is applicable to businesses in the UK and the Republic of Ireland. It applies to entities that do not apply IFRS, FRS 101, or FRS 105. The content of FRS 102 is based on the International Financial Reporting Standard (IASB) for Small and Medium-sized Entities.
What Does it Mean for My Business?
If your business is based in the UK or Republic of Ireland, you may need to comply with the requirements of FRS 102. Generally (there are numerous exceptions and caveats, so consult an accounting professional for your specific circumstances), if you are not a listed company, and could be defined as a small or medium-sized entity, you can choose to comply with full IFRS – or with FRS 102. The requirements of FRS 102 govern almost all aspects of your business’ accounting and reporting functions.
What is FRS 102 Compliance?
FRS 102 compliance is ensuring that your accounting practices and financial reporting are consistent with the requirements of the FRS 102 standard. This standard is updated from time to time, therefore it is important to be aware of the latest regulations. For example, there are likely to be changes to the FRS 102 standard with regards to areas such as lease accounting and revenue recognition, in order to bring the standard in line with the latest International Financial Reporting Standards (IFRS).