A summary of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, including information on disclosure exemptions, who should apply the standard, current proposals and a timeline of past amendments, announcements, exposure drafts and consultations.

Summary

FRS 102 applies to financial statements that are intended to give a true and fair view of a reporting entity’s financial position and profit or loss for a period. It applies not only to companies but also to public benefit and other types of entity.

Reduced disclosures area available for the individual accounts of qualifying subsidiaries and parents. Section 1A Small Entities sets out the different presentation and disclosure requirements available to small entities.

FRS 102 is based on the IFRS for SMEs, however the text of the IASB’s standard has been amended in some significant respects in order to:

• comply with the Companies Act;
• allow additional accounting policy choices such that where a policy choice exists in current UK GAAP and this is aligned with IFRS the choice also exists in FRS 102; and
• reflect feedback during the consultation process.

In some circumstances, entities applying FRS 102 will need to refer to other accounting standards.

• Entities with publicly traded ordinary shares must apply IAS 33 Earnings per Share.
• Entities with publicly traded equity or debt instruments must apply IFRS 8 Operating Segments.
• Entities engaged in extractive industries must apply IFRS 6 Exploration for and Evaluation of Mineral Resources.
• Entities that issue insurance contracts, reinsurance contracts or financial instruments must apply FRS 103 Insurance Contracts.

Reduced disclosures

FRS 102 includes some disclosure exemptions for subsidiary and parent companies meeting certain conditions in their individual accounts. The main exemptions are from:

• preparation of a cash flow statement;
• disclosure of related party transactions with and between wholly-owned subsidiaries;
• disclosures relating to financial instruments.

Small entities

Section 1A Small Entities may be applied by:

• a company meeting the definition of a small company that is not excluded from the small companies regime;
• an LLP meeting the definition of small that is not excluded from the small LLPs regime*; or
• any other entity that would have met the definition of a small company if it were an incorporated company*.

*To the extent that the requirements of Section 1A do not conflict with any statutory framework under which such entities report, for example, from a SORP making body.

• Find out more about small and micro-entity reporting

Who should apply the standard?

FRS 102 will be applied by all entities which are neither required nor elect to apply:

• Adopted IFRS (being EU-adopted IFRS prior to 1 January 2021 and thereafter UK-adopted international accounting standards for companies that apply UK company law and EU-adopted IFRS for companies that apply Irish company law);
• FRS 101 Reduced Disclosure Framework; or
• FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime. 

Timeline

Date	Update
28 September 2023	FRS issues FRED 84 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Supplier finance arrangements. The consultation period ends 31 December 2023.
11 July 2023	FRC issues Amendments to FRS 102 and FRS 101 – International tax reform – Pillar Two model rules. The amendments introduce temporary exemptions and targeted disclosure requirements relating to the implementation of Pillar Two legislation.
15 December 2022	FRC issues FRED 82 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review.
31 January 2022	January 2022 editions of accounting standards reflect amendments made since the previous editions were issued in 2018 as well as changes in Irish company law.
9 June 2021	FRC issues Amendments to FRS 102 and FRS 105 – COVID-19-related rent concessions beyond 30 June 2021. Amendments are effective for accounting periods beginning on or after 1 January 2021, with early application permitted.
20 April 2021	FRC issues exposure draft FRED 78 Draft amendments to FRS 102 and FRS 105 – COVID-19-related rent concessions beyond 30 June 2021. The consultation period ended on 11 May 2021.
21 December 2020	Amendments to FRS 102 – Interest rate benchmark reform (Phase 2) Amendment issued in response to financial reporting issues arising from IBOR Phase 2.
21 December 2020	Amendments to accounting standards – UK exit from the EU Amendments to FRS 100, 101, 102, 103, 104 and 105 issued by the FRC to ensure consistency with UK company law and to update legal references and terminology used in the standards, reflecting changes in legislation as the EU exit transition period ends.
19 October 2020	FRS 102 – COVID-19-related rent concessions News update from the FRC announcing publication of Amendments to FRS 102 and FRS 105 – COVID-19-related rent concessions, which sets clear requirements for recognising changes in operating lease payments arising from COVID-19-related rent concessions on a systematic basis over the periods the change in lease payments is intended to compensate.
23 July 2020	FRC proposes amendments to UK accounting standards The FRC has issued an exposure draft FRED 76 Draft amendments to FRS 102 and FRS 105 – COVID-19-related rent concessions, which proposes explicit requirements for accounting for temporary rent concessions for operating leases occurring as a direct consequence of the COVID-19 pandemic.
29 May 2020	Proposed amendments to UK accounting standards News update issued by the FRC announcing the publication of FRED 74 Draft amendments to FRS 102 – Interest rate benchmark reform (Phase 2).
17 December 2019	Amendments to FRS 102 - Interest rate benchmark reform News update issued by the FRC on 17 December 2019 announcing publication of Amendments to FRS 102 – Interest rate benchmark reform.
11 July 2019	FRC concludes 2018/19 review of FRS 101 and proposes limited amendments to FRS 102 News update issued by the FRC on 11 July 2019 announcing publication of FRED 72 Draft amendments to FRS 102 – Interest rate benchmark reform.
24 May 2019	Amendments to FRS 102 – Multi-employer defined benefit plans Publication of narrow-scope amendments announced by the FRC.
29 January 2019	FRC proposes amendments to FRS 101 and FRS 102 News release issued by the FRC on 29 January 2019 announcing FRED 70, arising from the annual review of FRS 101, and FRED 71, addressing multi-employer defined benefit plans.
28 March 2018	March 2018 editions of accounting standards reflect triennial review amendments Press notice issued by the FRC on 28 March 2018 announcing the publication of new editions of all UK and Ireland accounting standards.
14 December 2017	Simplification of UK GAAP benefits up to 4 million businesses News update issued on 14 December 2017 announcing the completion of the FRC's triennial review of FRS 102 along with the publication of amendments and clarifications to the standards.
20 September 2017	FRC proposes amendments to FRS 102 for gift aid payments News update issued on 20 September 2017 by the FRC announcing FRED 68 which makes amendments to accounting for gift aid payments made by a subsidiary to its charitable parent.
8 May 2017	Amendment to FRS 102 (May 2017): Directors’ loans – optional interim relief for small entities News update issued by the FRC on 8 May 2017 announcing an amendment to the standard, effective immediately with retrospective application available. This amendment is considered to be an interim measure and will be deleted as part of the finalisation of FRED 67.
23 March 2017	Triennial review results in simplifications proposed to FRS 102 Press notice issued by the FRC on 23 March 2017 announcing FRED 67 with proposals to simplify accounting for directors' loans along with changes to accounting for intangible assets and investment property.
8 March 2017	FRC issues amendments to fair value disclosures in FRS 102 Press notice issued by the FRC on 8 March 2016 announcing amendments to simplify the preparation of disclosures about financial instruments for financial institutions and retirement benefit plans.
13 December 2016	FRC removes requirement to notify shareholders from FRS 101 and FRS 102 and consults on FRED 66 News update from the FRC released on 13 December 2016 announcing the publication of ‘Amendments to FRS 101 and FRS 102 - Notification of shareholders’.
22 March 2016	FRC invites feedback on FRS 102 to inform its future development Press notice issued by the FRC on 22 March 2016 inviting comments to inform the first triennial review.
8 March 2016	FRC issues amendments to fair value disclosures in FRS 102 Press notice released by the FRC on 8 March 2016 announcing amendments aimed at simplifying the preparation of disclosures about financial instruments for financial institutions and retirement benefit plans.
4 November 2015	FRC proposes limited scope improvements to FRS 102 Press notice issued by the FRC on 4 November 2015 announcing an exposure draft (FRED 62) proposing limited scope improvements to FRS 102 relating to financial institutions and retirement benefit plans.
29 September 2015	FRC issues revised editions of FRS 100, FRS 101 and FRS 102 The September 2015 editions of the standards incorporate amendments that were issued in July 2015.
16 July 2015	New accounting standards offer simplification for micro-entities and small entities Press notice issued by the FRC on 16 July 2015 announcing amendments to FRS 100, 101 and 102 and the publication of a new accounting standard FRS 105. The changes also include the withdrawal of FRSSE.
20 April 2015	FRC consults on limited amendments to FRS 102 Press notice issued by the FRC on 20 April 2015 announcing the release of FRED 61 which proposes amendments to simplify the accounting for share and share option awards where a cash-settlement alternative exists.
27 February 2015	FRC amends FRS 102 relating to pension obligations Press notice issued by the FRC on 27 February 2015 announcing amendments on accounting for defined benefit pension plans.
22 August 2014	FRC issues revised editions of FRS 101 and FRS 102 The August 2014 editions incorporate previously published amendments to FRS 102, FRS 102 and FRS 103.
20 August 2014	FRC proposes amendments to FRS 102 relating to pension obligations Press notice issued by the FRC on 20 August 2014.
23 July 2014	FRC issues amendments to FRS 101 and FRS 102 Press notice released by the FRC on 23 July 2014 announcing amendments relating to basic financial instruments and hedge accounting.
15 November 2013	FRC proposes amendments to hedge accounting Press notice issued by the FRC on 15 November 2013 inviting comments to proposed amendments on hedge accounting.
14 March 2013	FRC issues FRS 102 Press notice issued by the FRC on 14 March 2013.
3 October 2012	FRC issues Exposure Draft of limited scope amendments to FRED 48 (draft FRS 102) The Financial Reporting Standard applicable in the UK and Republic of Ireland Press notice issued by the FRC on 3 October 2012 announcing amendments relating to the accounting for multi-employer pensions and service concession arrangements.
30 January 2012	ASB issues revised proposals for the Future of Financial Reporting Standards in the UK & Republic of Ireland Press notice issued by the FRC on 30 January 2012 announcing revised FREDs 46, 47 and 48 following feedback to its previous exposure drafts.
18 March 2011	FRED 45: Financial Reporting Standard for Public Benefit Entities (FRSPBE) (March 2011)
29 October 2010	The Future of Financial Reporting in the UK and the Republic of Ireland Press notice issued by the FRC on 29 October 2010, announcing proposals for a three-tier reporting framework and a simplified UK standard based on the IFRS for SMEs.