The impact of FRS 101 and FRS 102 in the UK

Two accounting standards in the UK, FRS 101 and FRS 102, will come into effect for all accounting periods commencing on or after 1 January 2015. A business may actually choose to apply the standards prior to this date if they wish to do so and here at TMF Group UK we can discuss your individual circumstances to ascertain if application will be necessary for you or if earlier application of the standards would be beneficial.

FRS 101 will affect you if you currently prepare accounts under IFRS, predominantly affecting the disclosures which must be stated in the accounts.

FRS 102 will potentially affect you if you currently prepare accounts under UK GAAP. The new standard will change the accounting treatment of a number of items, in particular:

  • Some financial instruments, mainly derivatives,  will need to be valued and included on the balance sheet
  • Deferred tax
  • Retirement and other employee benefits
  • Intangible assets
  • Investment properties

How can TMF Group help you?

  • We can review your current circumstances to provide you with guidance in relation to the new standards and how they apply to you
  • We can apply the necessary changes to your accounts
  • We can provide assistance in relation to other matters affected by the changes eg bank covenant compliance
  • We can provide assistance where there are differences between the new standards and the existing GAAP applied by any overseas parent company.

For more information you can contact Neil Arthur, Managing Director at neil.arthur@tmf-group.com.

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