This new standard is the uks adaptation of the iasbs ifrs for smes, an ifrs designed to be used by small and medium sized entities smes for whom adoption of full ifrs is a burden, with its detailed implementation guidance and vast array of disclosures. This has the effect that any entity not required to apply full ifrss will be able to apply frs 102. The changing accounting and reporting landscape frs. You fall under its remit if you dont use euadopted ifrs, frs 101 or frsse. The role and current status of ifrs in the completion of national. Based on the international financial reporting standard for smallmedium entities ifrs for smes, frs 102 brings about a simplified reporting regime for entities that will fall under its scope as well as introducing more uptodate and relevant accounting requirements that have fallen behind in.
The financial reporting standard applicable in the uk and republic of ireland 1 scope 8 1a small entities 12. Ifrs for smes is a simplified version of full ifrs aimed at. The remainder of this document summarises the main differences between ifrs for smes and full ifrs. The trickle down effect ifrs and accounting by smes efaa. Frs 102 is the financial reporting councils derivation of the iasbs ifrs for smes. This is an essential aspect for both the readers of the financial statements of. Frs 102 is based on the principles found in ifrs standards, specifically ifrs for smes.
The most significant change is that receivables and payables that carry no interest, or interest below market rates, which. Ifrs for smes ifrs section 1 small and mediumsized entities ias 1 presentation of financial. The frc has replaced existing uk gaap with a new financial. Frs 102 incorporates a number of changes to the ifrs for smes to a widen the. It is one of the new financial reporting standards replacing old uk gaap. If a particular subject area is not mentioned it may be presumed that ifrs for smes is either the same as, or is similar to, the corresponding subject in full ifrs. The amendments were made in response to concerns about the possibility of unintended accounting consequences in relation to basic debt instruments when frs 102 was issued in the uk. Ifrsuk differences paper p2 for exams in september 2017. How will the transition from current uk gaap to frs 102.
For exams in september 2017, december 2017, march 2018 and june 2018 introduction this supplement provides the additional material examinable in the uk and irish paper. Frs 102, the frs for uk gaap reporters new uk gaap, which is based on the ifrs for smes. Possibly the greatest shift in the final standard was that the iasb considered this to be a stand. Ifrs for smes also permits some of the statements required to be omitted or merged with other statements under certain circumstances, which will reduce the disclosure requirements for smes. Frs 102 has its foundations built on the principles found in international financial reporting standards ifrss, specifically ifrs for smes. Similarities and differences a comparison of full ifrs and ifrs for smes 7 executive summary this executive summary aims to demonstrate how converting to ifrs for smes has implications far beyond the entitys financial reporting function. Helpfully, the changes reduce the number of accounting differences with existing irish gaap. March 2018 frs 102 the financial reporting standard. Application guidance amendments to international financial reporting standards as adopted in the european union for compliance with the act and the regulations. Access the above pronouncements from eifrs or from this ifrs for smes site. Its principles should be applied to all accounting periods that start after 1 january 2015. Frs 102 is the core of new irish gaap, providing a concise and simplified accounting framework for companies in its scope. Frs 102 replaces all current irish accounting standards ssaps, frss and uitfs other than frs 27 life assurance with a single frs. These illustrative ifrs financial statements are intended to be used as a source of general technical reference, as they show suggested disclosures together with their sources.
A guide through ifrs for small and mediumsized entities. What is the conflict between ifrs and the uk gaap in. In the uk, for instance, frs 102 the financial reporting standard applicable in the uk and. Ii significant differences between frs 102 and the ifrs for smes. Can a subsidiary of a parent company which uses full ifrss use the ifrs for smes. The standard is around 340 pages long, and has far fewer disclosure requirements than euadopted ifrs. Such changes do not modify the underlying requirements of the ifrs for smes in. This will still be an option for eligible entities all except ifrs are within the companies act accounts framework. Impact of frs 102 on investment funds prepared under irish gaap introduction the accounting council of the frc has. Frs 102, on the other hand, defines the fundamentals of the new single reporting standard that is largely based on the ifrs for smes and aims to replace all existing uk accounting standards, while frs 103 merges all current financial. Frs 102 the financial reporting standard applicable in the uk and republic of ireland. In10 while many of the paragraphs in this guide have been taken from the ifrs for smes, it has been necessary to make some wording changes to improve the flow of the drafting or for other editorial reasons.
Originally derived from ifrs for smes, frs 102 has undergone many. Technical factsheet frs 102 reporting for medium sized and. A comparison of old uk gaap, new uk gaap frs 102 and eu. Uk gaap and ifrs for smes is a better but not perfect comparison. Originally derived from ifrs for smes, frs 102 has undergone many changes during the development process. However, the frc amended it in many respects to align the requirements of frs 102 with many existing treatments allowed by existing frss or euadopted ifrs.
So the user of the statement is able to evaluate the impact of the entitys activities on the financial position ifrs for smes 7. Access a pdf version of the faqs to download, print or save. The reduced disclosure framework in frs 101 or the exemptions in frs 102. This factsheet focuses on the major changes from current uk gaap for nonsmall companies that may have an impact when switching to frs 102.
Ifrs stands for international financial reporting standards which is the accounting framework used in the rest of the world. Main differences between full ifrs and ifrs for smes. The financial reporting standard for smaller entities frsse. Ifrs for smes 2009 institute of chartered accountants of. It is to be used in conjunction with the 2017 study text for examinations in september and december 2017 and march and june 2018. Where this publication states same as old uk gaap or same as ifrs, this means that the. The same primary statements as under ifrs are required to be. Frs 102 the financial reporting standard applicable in the uk and republic of. Frs 102 is based on an ifrs framework, but is designed to be simplified and streamlined compared to euadopted ifrs or current uk gaap. Ifrs for smes the term ifrs for smes section is used.
The detailed accounting provisions within frs 102 are broadly consistent with the ifrs for smes, which was issued by the iasb back in july 2009. Following a discussion paper in 2004, and an exposure draft in 2007, the ifrs for smes standard was issued in july 2009. Uk and republic of ireland, which is based on the ifrs for smes but amended to permit some previous. These are illustrative ifrs financial statements of a listed company, prepared in accordance with international financial reporting standards.
Frs 102 was developed using ifrs for smes as issued by the iasb at its core. September 2015 frs 102 the financial reporting standard. As at 1 january 2016 2 ifrs for smes at a glance ifrs at a glance for smes iaag sme has been compiled to assist in gaining a high level overview of international financial reporting standards for small and medium entities ifrs for smes. The new standards are due to take effect for reporting periods starting on or after. Uk replaces local gaap with new standard based on ifrs for.
Impact of frs 102 on investment funds prepared under irish. Frs 102, the financial reporting standard applicable in the uk and republic of ireland. Investment property investment property ifrs accounting policy choice. Ifrs for smes is intended to apply to general purpose financial statements by entities that are classed as small and mediumsized or private and nonpublicly accountable. At the start of each chapter is a brief summary of the key requirements of ifrs, contrasted with the parallel requirements of. The frc has also issued frs 105 the financial reporting standard applicable to the. Iaag sme includes all sections of theifrs for smes in issue as at 1 january 2016. Gaap comparison wiki the aicpa is developing a resource that compares the international financial reporting standard for small and mediumsized entities ifrs for smes with corresponding requirements of u. Frs 102 new uk gaap with reduced disclosures available in that standard. As such, these stakeholders are interested in understanding how the principles and criteria included in the frf for smes accounting framework compare to those other bases of accounting.
Frs 102 is derived from the iasbs ifrs for smes, reflecting a simplified version of full ifrss, but incorporates changes made by the frc, one of which widens the scope of the standard significantly compared to the ifrs for smes. March 2018 financial reporting framework for small and. Ifrs vs frs 102 for investment funds introduction the purpose of this paper is to highlight the significant differences between international financial reporting standards as adopted by the european union ifrs and the recently developed frs 102 the new irish gaap as. The detailed requirements are set out in the following pages. The introduction of frs 102 will have a major impact on the financial statements of any entity currently preparing accounts under uk gaap.
In the uk, for instance, frs 102 the financial reporting standard applicable in the uk and republic of ireland is applied, which is broadly based on the ifrs for smes. Frs 102 is mandatory for periods beginning on or after 1 january 2015, although earlier adoption is permitted. Frs 102, on the other hand, defines the fundamentals of the new single reporting standard that is largely based on the ifrs for smes and aims to replace all existing uk accounting standards, while frs 103 merges all current. This guide has been prepared based on the complete ifrs for smes, together with the basis for conclusions, illustrative financial statements and presentation and disclosure checklist that were released in. This will still be an option for eligible companies. Ifrs vs frs 102 for investment funds obk accountants. Ifrs for smes is intended to apply to generalpurpose financial statements by entities which are classed as small and mediumsized or private and nonpublicly accountable. Amendments to the ifrs for smes issued in may 2015. Ifrs for smes is intended to apply to generalpurpose financial statements by entities which are classed as small and medium. Saica will be hosting a full day seminar on the amendments to the ifrs for smes in september and october 2015. What is the conflict between ifrs and the uk gaap in accounting treatments of financial statements. Frs 102 is consistent with ifrs 2 in all material aspects, except for their effective dates for nonlisted companies. Frs 102 fair value hierarchy the problem frs 102 duplicates the threelevel fair value measurement hierarchy in ifrs for smes. The frc received feedback that the conditions debt instruments must satisfy in order.