Archive for the ‘FRS102’ Category

FRS102: What does it all mean?

Posted on: April 5th, 2016 by Laura Farrow No Comments

Laura FarrowFRS102 isn’t something most businesses are going to get excited about. Even for those that have heard of it, many may not know what it means in practice.

In summary FRS102 is a set of rules that looks to standardise the accounting treatment that accountants use to represent the financial affairs of a company. The idea is that when looking at financial reporting across the spectrum of business, anyone looking will be comparing apples with apples because the treatment will be the same.

Small companies do have different disclosure requirements to large companies. There is also a class of companies called micro-entities – very small companies and they also have different rules.


FRS102 and its impact on Corporate Finance Assignments

Posted on: January 28th, 2016 by Katherine Broadhurst No Comments

Katherine BroadhurstThere are a number of areas that FRS102 is changing in UK GAAP which will have an impact on transactions and other corporate finance work.

Asset Values

A key change in the new GAAP in the UK as a result of FRS102 is the valuation of many assets at Fair Value including investment properties, some financial instruments, biological assets and investments in associates and joint ventures. In addition, the movements in fair value in these items each year are taken to the profit and loss account, rather than the movements being accounted for through reserves.

With the movements being within the main profit and loss account, now called the Statement of Comprehensive Income, there will be new items which will impact on the profits of the business which previously have not.


FRS102 and 105 – impact on farming

Posted on: January 13th, 2016 by Sarah Curzon 2 Comments


Sarah CurzonThe largest changes to accounting standards in a generation are now in force with the key new standard being FRS 102 and FRS 105 for micro entities.

The key areas where these impact on farm accounts are in the areas of inventory or stock and income recognition, including government grants and basic payments.


Inventory in farming terms means livestock or crops grown for sale. Under FRS102, there is a specific agricultural inventory section, with a choice of carrying stock at either “fair value” or cost. The reported fair value will usually be market value less any realisation costs, although where the financial year end falls in the middle of a growing or rearing season, the fair value at year end could be the present value of the estimated future revenue. If the fair value treatment is chosen, this must be continued and it is not possible to revert to cost treatment at a later date. There are also detailed disclosures required under either treatment in FRS102.