Ernst & Young comments on new UK and Ireland Financial Reporting Standards
14 March 2013
Release of FRS 102 marks the dawn of a new era in financial reporting in the UK and the Republic of Ireland
Today the Financial Reporting Council ("FRC") issued FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.
Commenting on this release, Andrew Davies, Ernst & Young partner and leader of Financial Accounting Advisory Services in the UK and Ireland said:
“We welcome the release of FRS 102 which now brings full clarity for preparers over the framework for their future statutory reporting. FRS 102 will be applied by many companies, particularly those without current or likely future IFRS reporting requirements within their group. Entities adopting the standard will benefit from the simplified accounting principles and some disclosure reductions, compared to UK GAAP.
"Whilst the new framework is not mandatory until periods beginning on or after 1 January 2015, the opening balance sheet presented under the new framework for those converting at this latest date will be 1 January 2014 (for December year ends); less than a year away. Companies need to start planning now as the change can have multiple impacts, which are not just accounting related; impacts on systems and processes, taxation paid and distributable reserves are the largest. Early planning allows companies to consider whether early adoption is advantageous, ensure any possible benefits of conversion are maximised and risks are mitigated as far as possible.”