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.
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.
The requirements regarding liabilities and equity 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.
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Liabilities and Equity
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. The scope of FRS 102, Section 22 and FRS 105 Section 17 are discussed, along with helpful real-life examples.
Liabilities and equity, provisions and contingencies
A full chapter on FRS 102, Section 21 'Provisions and Contingencies' and Section 22 'Liabilities and equity', in this accessible introduction to the accounting rules relevant to tax computations in the UK. Written for tax practitioners who wish to gain a better understanding of accounting rules in the UK.
A chapter on share-based payments - part of a one-stop-shop guide by Steve Collings on all aspects of UK auditing standards and new UK GAAP accounting standards. The chapter shows how to put the standards into practice, covering the scope of UK GAAP, recognition and measurement, modifications to terms and conditions, cash-settled share-based payment transactions, share-based payment transactions with cash alternatives, group plans, government-mandated plans, disclosure requirements and auditing share-based payment arrangements.
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Financial liabilities and equity
Fully updated guide focusing on each area of the financial statement in detail with illustrative examples. This chapter gives a comparison of FRS 102 Section 22 and IFRS, discusses contingent settlement provisions, recognition and measurement of issued equity instruments, and highlights provisions for other specific instruments and transactions.
Fully updated guide focusing on each area of the financial statement in detail with illustrative examples. This chapter gives a comparison of FRS 102 Sections 11, 12, 22 and IFRS, and looks at recognition and measurement accounting policy choice, financial liabilities and equity, classification, initial recognition and measurement, subsequent measurement, derecognition, hedge accounting, presentation and disclosures.
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.
Manuals and handbooks
The ICAEW Library stocks the latest UK GAAP handbooks and manuals. You can browse all our books on FRS 102 and liabilities and equity or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at firstname.lastname@example.org
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 liabilities and equity covers the classification of instruments as liability or equity, accounting for the issue of equity instruments, convertible debt and other compound financial instruments, treasury shares, distribution to owners, and shares of a consolidated subsidiary.
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 financial liabilities and equity explains deals with the classification of an instrument as liability or equity, contingent settlement provisions, puttable instruments or instruments imposing an obligation only on liquidation, original issue of shares, equity arising from transactions with owners, capitalisation or bonus issue of shares, treasury shares, convertible debt, distribution to owners, distributable reserves.
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