Periodic review of UK GAAP
As the organisation embarks on outreach activity, Jenny Carter of the FRC highlights areas of potential change and seeks views to inform the next comprehensive review of FRS 102.
UK and Ireland accounting standards are subject to periodic reviews, at least every five years. This ensures they remain up to date and continue to require high-quality and understandable reporting, proportionate to the size and complexity of the entity and users’ information needs.
The aim is to keep FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland broadly stable between comprehensive, periodic reviews, which helps to minimise any costs associated with changes in reporting requirements. However, during a five-year period, some unforeseen issues may arise and there have been a few changes to FRS 102 since the last review to respond to urgent issues, such as interest rate benchmark reform and COVID-19-related rent concessions. These typically impact only a proportion of the entities applying the standard.