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FRS 102: Provisions and contingencies under UK GAAP

FRS 102 Section 21 sets out the requirements that apply to provisions, contingent liabilities and contingent assets that are not covered by other sections of the standard.

The standard

The requirements regarding provisions (liabilities of uncertain timing or amount) and contingencies 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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Provisions and contingencies

A detailed, practical chapter on financial reporting of provisions and contingencies under FRS 102, section 21 and FRS 105, section 16, with worked examples. The chapter includes sections on estimating provisions, discounting provisions, contingent assets, contingent liabilities, subsequent measurement, onerous contracts, future operating losses and disclosures.

Provisions and Contingencies

A chapter on provisions and contingencies 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 21 and FRS 105 Section 16 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.

Provisions and Contingencies

A chapter on provisions and contingencies - 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 accounting disclosure requirements as well as auditing provisions and contingencies.

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Provisions and contingencies

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 21 and IFRS, and looks at the scope of the section, how to determine when a provision should be recognised, contingent liabilities, contingent assets, how probability determines whether to recognise or disclose, initial and subsequent measurement, funding commitments, presentation, disclosure, and examples of provisions.

Provisions and contingencies

A practical manual for preparing new UK GAAP-compliant disclosures. This chapter on FRS 102 Section 21 discusses accounting for a provision, provisions and contingencies in financial statements, restructuring provisions, estimating a provision, future operating losses, prejudicial disclosures, and disclosure requirements.

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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.

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 provisions and contingencies 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 provisions and contingencies covers initial recognition, initial measurement, subsequent remeasurement, specific application, contingent liabilities, contingent assets, and disclosures.

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 provisions and contingencies deals with the definition of provision, recognition criteria for provisions, contingencies, measuring provisions, applying the recognition and measurement rules, and presentation and disclosure.

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