Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Corporate Finance Manual

From
HM Revenue & Customs
Updated
, see all updates

FRS 102: transition

First-time adoption of New UK GAAP

FRS 101 and FRS 102 effective date is for accounting periods beginning on or after 1 January 2015 although early adoption is permitted subject to meeting the relevant criteria set out in each standard.

An entity applying either FRS 101 or FRS 102 should recognise all financial assets and liabilities that qualify for recognition, and which have not yet qualified for derecognition. However assets previously recognised and then derecognised under previous GAAP need not be recognised on adopting of FRS 101 or FRS 102.

FRS 101 and FRS 102, subject to certain exceptions, require that their recognition and measurement criteria are applied retrospectively, with the opening balance of retained earnings for the earliest presented (for example, with effect from 1 January 2014) and all other comparative amounts adjusted as if the standard had always been in use.

As new UK GAAP is effective for accounting periods beginning on or after 1 January 2015 the transition considerations are of significance to many companies. The transitional provisions for both FRS 101 and FRS 102 must therefore be considered carefully. There are detailed provisions relating to the effective date and transition to adopting FRS 101 or FRS 102; the information above is only a broad summary.

HMRC has published on line guidance which addresses the key tax implications of transition to FRS 101 and FRS 102, which can be found here:

.