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FRS 102: Financial instruments under UK GAAP

FRS 102 Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues set out the requirements for the recognition, derecognition, measurement and disclosure of financial assets and financial liabilities. Section 12 includes the requirements for derivatives and hedge accounting.

The standard

The requirements regarding financial instruments 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.

ICAEW guides and support

Helpsheets and factsheets

Preparing and filing Micro-Entity accounts

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10-01-2023

This new factsheet is designed to provide an overview of FRS 105. It also covers the criteria for qualifying as a micro-entity and the exemptions available to such entities.

Financial instruments: FRS 102 factsheet

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05-01-2023

Summarising the requirements of FRS 102 for basic and other financial instruments, this factsheet includes practical tips and illustrative examples.

FRS 102 - Impairment of assets

05-01-2023

This factsheet is a summary of the basic principles of accounting for impairment with practical guidance to will help with implementation.

FRS 102 Financial Instruments - Hedge Accounting

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15-12-2022

This factsheet outlines the key requirements of FRS 102 in respect of hedge accounting and includes practical examples on their application.

FRS 102 Deferred Tax factsheet

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22-11-2022

This recently updated factsheet provides an overview of the accounting and disclosure requirements for deferred tax in accordance with FRS 102 in response to some frequently asked questions about this challenging topic. (updated November 2022).

Small and micro-entity reporting compared

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21-08-2019

In this guide, the Financial Reporting Faculty outlines the differences between FRS 102 and FRS 105 and other factors to consider when deciding whether to prepare accounts using the small or micro-entities regime.

FRS 102 Debt for equity swaps

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05-06-2018

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. Published 05 June 2018.

Loans at non-market rates under FRS 102

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11-07-2017

This short guide outlines, and illustrates by example, the accounting requirements of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland applicable to loans that are provided interest free or at below-market interest rates, a common example of which are intercompany loans.

Hedge accounting under FRS 102

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01-12-2015

Technical helpsheet issued to help ICAEW members to understand aspects of hedge accounting under FRS 102.

Foreign currency translation under FRS 102

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01-12-2015

Technical helpsheet issued to help members understand foreign currency translation under FRS 102.

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