It’s the final countdown to FRS102

For those in the investment sector, the adoption of FRS 102 is likely to have a significant impact on the preparation of financial statements. It is worth bearing in mind that the first period of mandatory adoption (any period beginning on or after 1 January 2015) for FRS 102 is rapidly approaching.

FRS 102 is the standard encompassing the new UK GAAP requirements and replaces, wholesale, the existing requirements under UK GAAP in its current form and will require, amongst other things:
  • the reconsideration of disclosures presented;
  • the assessment of whether your company falls under the broad definition of a financial institution (if it does there will be extensive disclosure requirements in relation to the financial instruments held and the risks associated with them);
  • the valuation of derivative financial instruments, for instance options, swaps and forward contracts; and
  • the assessment of whether any intercompany loans are at their fair value.
Furthermore, these issues not only need to be addressed for 2015, they will need to be retrospectively applied to the 2014 figures presented. If this is a topic of interest, additional information is available in our factsheet, ‘Investment Funds – Are you ready for the new financial reporting standards’. If you require additional support or advice on this matter, please contact Geoff Woodhouse.

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