The Financial Reporting Council (FRC) is calling for views on potential changes and improvements to the UK’s main accounting framework under FRS 102 to take into account the latest reporting issues
UK and Ireland accounting standards are subject to periodic reviews, at least every five years, to ensure they remain up-to-date and continue to require high-quality and cost effective financial reporting from entities within their scope.
The FRC is starting the next periodic review of FRS 102 (and other UK and Ireland accounting standards) and has announced a six-month review.
Currently there are a number of areas for potential reform to take into account some of the latest International Financial Reporting Standards (IFRS), including IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases.
An important part of this process is seeking views from stakeholders on areas that might be considered as part of the review. This might include new issues/transactions that should be addressed, or comments or suggestions in relation to the current requirements. In addition to stakeholder feedback the review will consider recent developments in financial reporting (such as changes in IFRS) and relevant developments in the wider reporting framework.
Any changes to accounting standards that are proposed as a result of the periodic review will be subject to public consultation at a later date, not expected to be before 2022.
The effective date for any amendments is currently expected to be 1 January 2024.
The last periodic review, the Triennial review 2017 led to a number of amendments released in December 2017, with an effective date of 1 January 2019. Those amendments responded to stakeholder feedback and considered recent improvements in financial reporting. They aimed to balance improvements in the quality of financial reporting with maintaining stability, improving the usability of FRS 102 and improving the cost effectiveness of FRS 102.
Stakeholders can provide comments on any aspect of the standards to email@example.com by 31 October 2021.