New UK GAAP
The UK's Financial Reporting Council (FRC) has fundamentally changed the financial reporting landscape in the UK with the introduction of four new standards that will impact on companies following current UK GAAP.
FRS 100 sets out the financial reporting requirements for UK and Republic of Ireland entities and identifies whether they need to produce their consolidated or individual financial statements in accordance with EU IFRS, FRS 102 or (for periods beginning before 1 January 2016) the Financial Reporting Standard for Smaller Entities (FRSSE). Micro entities may be able to use FRS 105.
It does not extend the mandatory application of EU-adopted IFRS beyond the current requirement of the IAS Regulation or market rules.
In the absence of such a requirement to prepare EU IFRS financial statements, the individual accounts or consolidated accounts of any entity within the scope of the proposals would be prepared in accordance with:
- EU IFRS
- FRS 101 for the individual accounts of a qualifying entity (see opposite)
- FRS 102 and FRS 103
- FRSSE (if the entity is eligible to use the FRSSE).
- FRS 105 (if the entity is eligible to be a micro entity)
The last four options above are all 'Companies Act' accounts.