FRS 102: overview
New UK GAAP
As noted at CFM20030 New UK GAAP encompasses FRS 101, FRS 101 and FRS 102. For those that apply FRS 101 the requirements and guidance in this manual which relates to IAS 39 will apply unless otherwise stated.
Overview of FRS 102
For those that apply FRS 102 the accounting for financial instruments is principally governed by Section 11, 12 and 22. Section 11 and Section 12 address the recognition and measurement aspects while Section 11 addresses the distinction between liabilities and equity.
The requirements of Section 22 are aligned to those of IAS 32 (and FRS 25 under Old UK GAAP) and consequently detailed guidance on this is presented at CFM21200+.
The recognition and measurement aspects of Section 11 and 12 in respect of financial instruments differ from IAS 39. This section focuses on those requirements.
The detailed provisions on derivatives (CFM24000+), hybrid debt (CFM25000+) and hedging (CFM27000+) are separately addressed in the dedicated guidance to those subjects.