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FRS 102: Employee benefits under UK GAAP

FRS 102 Section 28 sets out the requirements that apply to short-term and long-term employee benefits, post-employment benefits and termination benefits.

The standard

The requirements regarding employee benefits are set out as part of 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.

Triennial review

The triennial review amendments to UK GAAP are effective for accounting periods beginning on or after 1 January 2019. Although many of the amendments aim to clarify rather than change accounting treatments, there are significant changes to some areas.

You can find more information on our Triennial review page.


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Employee benefits

Fully updated guide focusing on each area of the financial statement in detail with illustrative examples. This chapter on accounting for employee benefits gives a comparison of FRS 102 Section 28 and IFRS, and covers short-term employee benefits, post-employment benefits, defined contribution plans, defined benefit plans, costs of administering employee benefit plans, other long-term employee benefits, termination benefits, group plans, death-in-service benefits, and disclosures.

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Example accounts

Model accounts and disclosure checklists for 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.

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

External resources

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.

From the FRC

Staff Education Note 9: Short-term employee benefits and termination benefits
FRC, December 2013
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
FRC, December 2013
Guidance note produced by the FRC comparing the accounting requirements for defined benefit plans under FRS 17 and FRS 102.

Further reading

Manuals and handbooks

The ICAEW Library stocks the latest UK GAAP handbooks and manuals. You can browse all our books on FRS 102 and employee benefits or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

GAAP 2019: UK reporting – FRS 102 (Volume B)
Deloitte, Croner-i, 2019
Comprehensive manual explaining how to apply FRS 102, with worked examples and extensive interpretation and guidance. The chapter on employee benefits covers the general recognition principle for all employee benefits, short-term employee benefits, post-employment benefits, other long-term benefits, termination benefits, and disclosure.
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Manual of accounting: UK GAAP
PwC, Lexis Nexis, 2019
Practical guide with worked examples throughout, dealing with day-to-day issues as well as complex questions. The chapter on employee benefits looks at short-term employee benefits, post-employment benefits, defined contribution plans, defined benefit plans, termination benefits, implications of the Pensions Act 2004, and requirements of the Companies Act 2006.
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Applying GAAP 2018-19
Anne Cowley, Croner-i, 2018
Practical guide explaining how to apply FRS 102 and FRS 105 with worked examples and disclosure suggestions. This edition has been updated with amendments made by the December 2017 triennial review. The chapter on employee benefits and share-based payments deals with short-term employee benefits, short-term compensated absences, profit-sharing and bonuses, post-employment benefit plans, defined contribution plans, defined benefit plans, multi-employer and state plans, group plans, insured benefits, and termination benefits.
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Preparing FRS 102 company accounts 2018-19
Anne Cowley, Croner-i, 2018
A practical guide for large and medium-sized companies preparing accounts under FRS 102 for periods beginning on or after 1 January 2018. This book includes model accounts and disclosure checklists, with discussion of the disclosure requirements for employee benefits.
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