The Financial Reporting Council (FRC) has issued three sets of amendments to UK and Ireland accounting and reporting standards, designed to address some topical issues, and maintain a necessary alignment with international standards
The amendment to FRS 101, relating to the effective date of IFRS 17, changes the effective date of an amendment to the definition of a qualifying entity, effectively allowing relevant insurers to continue to apply FRS 101 for a further two years.
The revised effective date for the new definition of a qualifying entity is accounting periods beginning on or after 1 January 2023.
The amendments to FRS 102 and FRS 105 are in response to the temporary rent concessions announced during the pandemic. These amendments will only affect entities that agree temporary rent concessions as a direct consequence of the Covid-19 pandemic which result in an overall reduction in the total consideration for an operating lease.
They set clear requirements for recognising changes in operating lease payments arising from Covid-19-related rent concessions on a systematic basis over the periods the change in lease payments is intended to compensate.
These amendments are effective for accounting periods beginning on or after 1 January 2020, with early application permitted.
The amendments to FRS 104 clarify and enhance requirements relating to the going concern basis of accounting in respect of interim financial reports. The amendments introduce an explicit requirement for management to assess an entity’s ability to continue as a going concern and disclose any related material uncertainties when preparing interim financial reports.
These amendments are effective for interim periods beginning on or after 1 January 2021, with early application permitted.