The Urgent Issues Task Force (UITF) was part of the previous standard-setting regime. It assisted the ASB by investigating areas where conflicting or unsatisfactory interpretations of accounting standards or Companies Act provisions existed, or had the potential to arise. The acronym GAAP stands for ‘Generally Accepted Accounting Practice’ — or, alternatively, ‘Generally Accepted Accounting Principles’ or ‘Generally Accepted Accounting Policies’. GAAP is a term used to describe the rules generally accepted as being applicable to accounting practices as laid down by standards, legislation or upheld by the accounting profession. How companies incorporated in the UK, or where the parent company is incorporated in the UK, can comply with UK accounting and reporting requirements.
Foreword to Accounting Standards
- The factsheets are intended to assist stakeholders by highlighting certain requirements of FRS 102.
- FRS 100 sets out the financial reporting requirements for UK and Republic of Ireland entities.
- The Financial Reporting Standards FRS 100, 101, 102 and 103 (known as new UK GAAP) are effective from 1 January 2015.
- The way companies raise capital and trade securities on a regulated market has changed.
Information on SORPs and where to find them can also be accessed via our ‘Accounting for specific sectors’ page, as well as on the FRC website. More information on each of these, plus additional guidance and resources, can be accessed via ICAEW’s UK GAAP hub page. FRS 101 Reduced Disclosure Framework sets out exemptions available to UK subsidiaries and parent companies that otherwise apply IFRS. The Audit Directive requirement still applies to companies with a parent company incorporated in the UK.
SORPs are issued by a number of industry and sector bodies which are recognised by the FRC as SORP-making bodies. For example, a SORP on investment trusts is issued by the Association of Investment Companies (AIC). Bodies must meet criteria set by the FRC and develop and maintain SORPs in accordance with the FRC’s policy. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory. Related impact assessments and feedback statements to the following publications. The first periodic review, the Triennial Review 2017, was completed in December 2017, with an effective date of 1 January 2019.
All SSAPs have been withdrawn for reporting periods starting on or after 1 January 2015. FRSs, and amendments to them, are usually first issued for consultation in the form of Financial Reporting Exposure Drafts (FREDs). The FRC website includes information on open and closed consultations (including on FREDs), and offers users the option of signing up for email news alerts to keep up with developments. The current Generally Accepted Accounting Practice in the UK (UK GAAP) is set out in the body of Financial Reporting Standards (FRSs) published by the UK’s Financial Reporting Council (FRC).
Current UK GAAP
Reforms were carried out in July 2012 to enable the FRC to operate as a unified regulatory body with enhanced independence. A new structure was implemented to ensure effective governance of all of the FRC’s regulatory activities under ultimate responsibility of the FRC Board. The present FRC and its subsidiary bodies are funded jointly by the accountancy profession, the financial community and the Government.
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If you list on an EEA regulated market you need to check the reporting requirements in the relevant jurisdiction. In addition, a significant amount of FRC/ASB material relating to UK accounting standards — including many older publications not available on the FRC’s website — is held in the Library collection. This material, which includes implementation guidance, discussion papers and impact assessments, can be browsed via the Library catalogue.
Superseded editions
FRS 101 sets out a reduced disclosure framework which addresses the financial reporting requirements and disclosure exemptions for the individual financial statements of subsidiaries and ultimate parents. This FRS is a single financial reporting standard that applies to the financial statements of entities that are not applying adopted IFRS, FRS 101 or FRS 105. FRS 102 is designed to apply to the general purpose financial statements and financial reporting of entities including those that are not constituted as companies and those that are not profit-oriented.
The requirements in FRS 102 are based on the IASB’s IFRS for SMEs Accounting Standard, with some significant amendments made for application in the UK and Republic of Ireland. The Table of Differences describes the relationships between UK and Ireland financial reporting standards and IFRS Accounting Standards. nonbank financial institution UK incorporated groups with securities admitted to trading on a UK regulated market need to prepare accounts using UK-adopted international accounting standards for all financial years beginning on or after 1 January 2021. The FRC has issued a table setting out the differences between UK and Ireland financial reporting standards and IFRS Accounting Standards.