FRS 102 review: common-sense improvements
ICAEW commends common-sense and targeted changes published by the Financial Reporting Council to the UK’s accounting rules for private companies.
ICAEW has lent its support to changes to FRS 102 following the FRC’s three-year review of the new accounting standard.
As noted in the Institute’s representation letter 70/17 commenting on FRED 67 Draft amendments to FRS 102 – Triennial review 2017, ICAEW supports the FRC’s decision to focus on incremental improvements and clarifications to FRS 102. The standard is still bedding down and now was not the time to make fundamental changes.
Nigel Sleigh-Johnson, ICAEW Head of Financial Reporting said: “The changes made are generally common-sense simplifications that balance efforts to reduce cost and complexity in financial reporting with the need to maintain the usefulness of the accounts. For example, the simplified treatment for the measurement of directors’ loans by small companies will please many, especially as the simplification has been extended to include loans from the directors’ wider family.
“Time will be needed for preparers to get to grips with the detailed amendments to FRS 102, which are more complex than they might initially appear. In particular, the options for early adoption will require careful consideration.”
ICAEW’s Financial Reporting Faculty will be producing a variety of resources over the coming weeks and months to assist businesses make a smooth transition to the revised regime, which is mandatory from 1 January 2019.
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