January 2022 editions of UK GAAP issued
On 31 January 2022, the Financial Reporting Council (FRC) issued new editions of the following standards:
- Foreword to Accounting Standards
- Overview of the financial reporting framework
- FRS 101 Reduced Disclosure Framework
- FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland
- FRS 103 Insurance Contracts
- Implementation Guidance to accompany FRS 103 Insurance Contracts
- FRS 104 Interim Financial Reporting
- FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime
The FRC have not reissued FRS 100 Application of Financial Reporting Requirements as there are some legislative changes needed that will be actioned later in 2022. Hence, we can expect FRS 100 to be reissued later in the year.
Why have the FRC reissued these standards?
The FRC are currently carrying out their periodic review of UK GAAP (although at the time of writing this article the periodic review was in its very early stages) so it begs the question as to why the FRC would need to reissue latest editions of the standards if they are going to change in the short-term.
Since the March 2018 editions of the standards were issued, there have been some changes made to them, such as:
- Amendment in respect of multi-employer defined benefit plans
- Amendments in respect of the interest rate benchmark reforms
- Amendments in respect of Britain’s exit from the EU
- Accounting and disclosure requirements of Covid-19-related rent concessions
The January 2022 editions of the standards consolidate all the amendments made since the last triennial review (note FRS 101 is reviewed on an annual basis). Whilst there are no changes to be aware of where the new editions are concerned, it is better to have new editions of the standards which incorporate all the changes made since the last editions were published.
In addition, the latest editions of the standards will provide the basis for the FRC’s periodic review. The Foreword to Accounting Standards and Overview of the financial reporting framework have also been reissued to reflect developments in accounting standards, legislation and regulation.
Category: Accounting and standards, Audit
