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Employee benefits under new UK GAAP

Section 28 of the accounting standard FRS 102 covers employee benefits. On this page you can access a range of articles, books and online resources providing useful links to the standard, summaries, guidance and news of recent developments.

General guidance and information on the accounting standard is available from our FRS 102 page. We also have a separate page on the pensions SORP.

Employee benefits were dealt with in FRS 12 and FRS 17 under old UK GAAP. These standards have been superseded by FRS 102.

What's on this page?

  • Full-text standard
  • Model accounts
  • Guidance and support from ICAEW
  • eBooks
  • Guides
  • Online articles
  • Articles and books from the Library

Contact the Library

Expert help for your enquiries and research.

E  library@icaew.com

T  +44 (0)20 7920 8620

Full-text standard

FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland
As issued by the Financial Reporting Council (FRC) in September 2015. This updated edition incorporates amendments issued in September 2014, February 2015, March 2015 and July 2015. Employee benefits are covered in Section 28.

More information and links to previous versions and amendments are available on our main FRS 102 page.

Model accounts

Model accounts and disclosure checklists for new UK GAAP
The ICAEW Library can provide model accounts and disclosure checklists for FRS 101, FRS 102, FRS 102 Section 1A, FRS 103 and FRS 105. The examples and checklists cover a broad range of entities, including small companies, charities, groups, LLPs and micro-companies.

ICAEW guidance and support

The new UK GAAP
ICAEW's financial reporting portal offering practical resources on the new regime, including guidance factsheets and FAQs covering key topics.

Ask ICAEW Technical Advisory Service

Get an opinion from the experts. Our experienced technical advisors can help you with your new UK GAAP questions and offer practical advice. Call the advisory helpline on +44 (0)1908 248 250.

Questions we've dealt with recently include:

  • What do I need to do in relation to holiday pay accruals under FRS 102?
  • When do I have to apply FRS 102 to my UK company client?
  • How does FRS 102 impact charities?

Find out more about the Technical and ethics advisory helpline, including our opening hours.

Financial Reporting Faculty

Financial Reporting Faculty
The faculty offers assistance and support in IFRS, UK GAAP and other aspects of business reporting. It offers technical briefings and factsheets, IFRS and UK GAAP standards-trackers, plus practical advice from industry experts and working accountants.


The Library provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Interpretation and application of UK GAAP for accounting periods commencing on or after 1 January 2015
Steve Collings (2015)
A detailed, practical guide to applying UK GAAP with specific sections and examples covering:

  • Summary of the key differences between FRS 102 and ‘old’ UK GAAP: Employee benefits
  • Employee benefits
  • Recognition of short-term employee benefits
    Includes discussion of holiday entitlement, profit-sharing and bonuses with examples.
  • Defined contribution pension plans
  • Defined benefit pension plans
    Includes discussion of accounts, multi-employer plans, curtailments and settlements, other long-term employee benefits, termination benefits and group plans with examples.
  • Deferred tax issues on pensions
  • Disclosure requirements.


Some guides and comparisons that we link to may pre-date the latest amendments to this standard. While these resources contain useful information, please treat them with appropriate caution.

Staff Education Note 9: Short-term employee benefits and termination benefits 
Guidance note produced by the FRC comparing the accounting requirements for employee benefits under FRS 12 and FRS 102.

Staff Education Note 10: Employee benefits – Defined benefit plans 
Guidance note produced by the FRC comparing the accounting requirements for defined benefit plans under FRS 17 and FRS 102.

Pension scheme financial reporting - A way forward?
Sample financial statements and notes highlighting emerging best practice for pension scheme reporting under FRS 102 and the revised SORP. Published by KPMG in April 2017.

FRS102: An employers guide
Article published by the pension consultants Spence and Partners in November 2015 discussing advanced recognition of asset returns, multi-employer schemes with non-segregated assets and surplus recognition.

FRS 102 and pension schemes 
Business Edge bulletin from BDO, published in September 2013, giving an overview of changes to the treatment for defined contribution plans and defined benefit plans.

Financial Reporting Standard 102: Employee benefits 
Factsheet reviewing the changes to short and long-term benefits produced by Crowe Clark Whitehill.

Accounting for defined benefit pension obligations under FRS 102 
Briefing produced by Towers Watson in June 2013 giving a comparison of FRS 17 and FRS 102, overview of transition and disclosure requirements.

Online articles

The Library provides access to leading business, finance and management journals. These journals are available to logged-in ICAEW members, ACA students and other entitled users subject to suppliers' terms of use.

Articles are available to logged-in ICAEW members, ACA students and other entitled users.

Articles from other sources

FRS 102: Employee remuneration, shares and pensions – tips and advice
CCH Daily, November 2016
This article reviews the rules on FRS 102 accounting for the two most significant sections dealing with employee remuneration: section 26 on share-based payments and section 28 on employee benefits. Available online to Accountancy Daily subscribers or in print from the Library.

FRS 102: Pensions and deficit disclosures
CCH Daily, September 2016
This article highlights changes to pensions reporting and the negative impact on balance sheets due to deficit disclosure requirements following the introduction of FRS 102 accounting rules. Available online to Accountancy Daily subscribers or in print from the Library.

FRS 102: Employee benefits reporting changes
AccountingWEB, May 2014
Detailed article by Steve Collings highlighting issues relating to employee benefits, with examples.

Articles and books in the Library collection

To find out how you can borrow books from the Library please see our guide to book loans. You can obtain copies of articles or extracts of books and reports by post, fax or email through our document supply service.

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