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FRS 102: Group accounts and business combinations under UK GAAP

FRS 102 Section 9 Consolidated and Separate Financial Statements explains when a parent entity must prepare group accounts, the treatment of special purpose entities and the consolidation procedures. Section 19 Business Combinations and Goodwill sets out the accounting treatment under the purchase method.

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The requirements relating to specific topics are set out as sections within FRS 102. However, individual sections of the standard should not be looked at in isolation as other parts may be relevant.

FRS 102 is regularly updated and amended by the Financial Reporting Council (FRC). For the full text of FRS 102, guidance on which version of the standard to apply and notes on recent amendments, see our main FRS 102 page.

ICAEW factsheets and guides

The Corporate Reporting Faculty's annual UK GAAP factsheets provide a more detailed discussion of recent UK GAAP amendments.

Exclusive Exemptions from consolidating and when a subsidiary can be excluded from consolidation under FRS 102
  • Helpsheets and support
  • 22 Apr 2026
This helpsheet explains when a parent can avoid preparing consolidated accounts and when a subsidiary may be excluded under FRS 102, covering legal exemptions, narrow exclusion criteria and how to account for excluded subsidiaries.
Exclusive Share options under FRS 102
  • Helpsheets and support
  • 25 Mar 2026
Helpsheet giving guidance on accounting for equity settled share options under FRS 102, covering grant date fair value, vesting conditions, group arrangements, disclosures, exit event awards, cancellations, and how to account for option exercises.
Exclusive Groups and consolidated accounts under FRS 102
  • Helpsheets and support
  • 25 Mar 2026
Helpsheet explaining how to account for groups under FRS 102, covering the purchase method, goodwill, deferred tax, changes in holdings, stepped acquisitions, equity transactions, and when merger accounting is allowed for group reconstructions.
Exclusive Share for share exchanges
  • Helpsheets and support
  • 29 Nov 2023
Technical helpsheet issued to help ICAEW members to understand the company law and financial reporting implications of a share for share exchange.

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Exclusive Consolidated financial statements
  • eBook chapter
  • 2026
  • Steve Collings
  • UK Financial Statements - Presentation and Disclosure Requirements
A chapter focusing on consolidated financial statements under FRS 102, to help readers understand what reporting entities may need to deal with when preparing their annual reports.
Exclusive Sample consolidated financial statements under FRS 102
  • eBook chapter
  • 2026
  • Example Financial Statements
Sample financial statements relating to a UK parent of a group, which is a qualifying entity for the purpose of a reduced disclosure framework, reporting under the provisions of FRS 102.
Exclusive Group accounts under UK GAAP
  • eBook
  • 2026
  • Steve Collings
  • Group Accounts under UK GAAP
This title provides accountants and auditors with easy to follow and well structured guidance on the preparation of group accounts in line with UK GAAP. The commentary identifies the differences between IFRS and UK GAAP in the treatment of group accounts.
Exclusive Business combinations and goodwill
  • eBook chapter
  • 2026
  • Steve Collings
  • Financial Reporting for Unlisted Companies in the UK and Republic of Ireland
A chapter on financial reporting of business combinations and goodwill under FRS 102, section 19.
Exclusive Business combinations
  • eBook chapter
  • 2025
  • Steve Collings
  • Practical Guide to UK Accounting and Auditing Standards
Chapter on business combinations in a guide to all aspects of UK auditing standards and UK GAAP accounting standards.
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Other resources

FRC Factsheet 6: FRS 102 Business Combinations
  • Helpsheets and support
  • FRC
This factsheet has been prepared to provide a high level overview to entities applying FRS 102 that undertake a business combination for the first time, covering an outline of the purchase method, the separation of intangible assets from goodwill and illustrative disclosures.
UK Accounting Plus
  • Website
  • Deloitte

Overviews of each UK accounting standard, with a history and timeline of key events and amendments.

UK GAAP 2026: Application of FRS 100–FRS 104 in the UK (May 2026)
  • Website
  • EY

Detailed manual that incorporates the September 2024 editions of FRS 100–104, plus amendments issued up to March 2026, and changes to legal requirements for UK companies and LLPs. It offers insight on practical application issues.

UK GAAP model accounts and disclosure checklists
  • Listing
  • ICAEW Library and Information Service
Example financial statements and disclosure checklists for UK GAAP available from the ICAEW Library & Information Service, Bloomsbury and other sources.

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