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FRS 102: Liabilities and equity under UK GAAP

FRS 102 Section 22 Liabilities and Equity sets out the requirements classifying financial instruments as either liabilities or equity, accounting for compound financial instruments, and accounting for non-controlling interests in consolidated financial statements.

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Access the standard

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 Preference shares - equity or liability under FRS 102?
  • Helpsheets and support
  • 24 Mar 2026
Helpsheet giving guidance on classifying and accounting for preference shares under FRS 102. It explains when they are equity, liabilities or compound instruments, and outlines measurement rules for holders and issuers.
Exclusive FRS 102 Debt for equity swaps
  • Helpsheets and support
  • 03 May 2023
  • PDF (216kb)
This factsheet explains how to account for ‘debt for equity swaps’ in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Bloomsbury Accounting and Tax Service.

Exclusive Share-based payment
  • eBook chapter
  • 05 Jun 2026
  • Steve Collings
  • Financial Reporting for Unlisted Companies in the UK and Republic of Ireland
A chapter providing detailed practical guidance on financial reporting of share-based payments under UK GAAP.
Exclusive Liabilities and equity
  • eBook chapter
  • 30 Mar 2026
  • Steve Collings
  • Small Company Financial Reporting
A chapter on liabilities and equity within the small companies' financial reporting framework and the micro-entities legislation, written by a specialist on small company reporting issues.
Exclusive Share-based Payment
  • eBook chapter
  • 11 Sep 2025
  • Steve Collings
  • Practical Guide to UK Accounting and Auditing Standards
Chapter on share-based payments in a guide to all aspects of UK auditing standards and UK GAAP accounting standards.
Exclusive Liabilities and equity, provisions and contingencies
  • eBook chapter
  • 01 Dec 2024
  • Julia Penny
  • Accounting Principles for Tax Purposes
A full chapter on FRS 102 sections 21 and 22, in this accessible introduction to the accounting rules relevant to tax computations in the UK.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

Other resources

UK Accounting Plus
  • Website
  • 2024
  • 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
  • 2026
  • 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
  • 2017
  • 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.

Further support

Financial reporting helpsheets
Corporate reporting resources

Practical resources including factsheets, online guides and webinars on financial and non-financial reporting.

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