FRS 102 – key themes and strategic report requirements

The UK accounting and corporate reporting environment has changed significantly over the last few years with both the advent of FRS 102 replacing the old financial reporting standards, and the requirement on many companies and other entities to produce a strategic report.

Strategic report
We set out which companies and other entities these requirements apply to, the key areas the report has to cover and best practice.

A strategic report should be balanced, comprehensive and understandable. A stakeholder should be able to pick it up and form a meaningful picture of the company’s position, performance and future prospects. Although it is typically much less detailed than the accounts themselves, it should still work on a standalone basis. Our report delves into what it means in practice for such a report to be balanced, comprehensive and understandable.

FRS 102
We explore the key themes as we see them from two full reporting cycles for FRS 102. Some of the themes covered are as follows:
  • the general format of new vs old UK GAAP;
  • the format of primary statements;
  • best practice in disclosing accounting policies;
  • the difference between an estimate and a judgement;
  • financial instruments, including intercompany arrangements;
  • leases;
  • employee benefits;
  • deferred tax;
  • small company specific considerations;
  • the future of FRS 102.
If you have any questions regarding FRS 102 please contact Geoff Woodhouse or your usual Moore Stephens advisor.

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