FRS 102 is the third of three new standards which will form the bulk of UK GAAP. FRS 102 is expected to be the standard of choice for most unquoted large and medium sized companies. The rules for determining a company’s size are quite complicated but typically it will be those which exceed more than one of the following criteria: turnover £6.5m per annum, total assets of £3.26m and 50 employees.
Whilst the new standard can be adopted early, it is mandatory for accounting periods commencing on or after 1 January 2015. However, since accounts must include comparative information, companies really need to be ready for the new standards from the year ended 31 December 2014. Early consideration of the impact of FRS 102 is vital.
Identifying differences between FRS 102 and your current GAAP and assessing the impact on your primary statements, distributable reserves and your tax cash flows.