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“The examples through the slides and the exercises to work on really helped with understanding. Thank you - well presented and not dry at all!”

Ms Nibloe

Head of Finance

SAICA CPD Events in UK



UK GAAP was replaced in its entirety by a suite of new UK accounting standards - namely FRS 100, 101, 102 & 103. These standards took effect for financial years commencing on/after 1 January 2015, with restated comparatives required for the prior period.

Therefore, the first period which will effectively be impacted by the new standards is the year commencing on/after 1 January 2014 - being the comparative year.

Transition date (a term referred to by the new standards) is the first day of the restated comparative period.


For an entity with a December year end:

  • transition date would be 1 January 2014; and
  • first set of accounts* under the new standards need to be prepared for 2015 financial year, showing restated comparatives* for the 2014 year.

*there is a significant increase in the quantity and complexity of disclosure required under the new standards compared to current UK GAAP.


It is worth pausing at the significance of the transition date for a moment.


Firstly, entities are required to provide significant additional disclosure as at transition date in the first set of accounts under the new standards.

Getting back to our example of an entity with a December year end, apart from having to restate the entire 2014 year, the following additional disclosure is required as at transition date of 1 January 2014: 

  • a conversion Balance Sheet (showing the detailed reconciliation from current UK GAAP amounts at 31 December 2013 to FRS 102 amounts as at 1 January 2014);
  • detailed reconciliations for equity and profit & loss from current UK GAAP to remeasured amounts applying the new standards.

Needless to say, preparing the conversion balance sheet and other reconciliations will undoubtedly be a time consuming exercise for entities.

The work does not quite stop here I'm afraid. The new standards also require three additional financial statements to be prepared for the annual accounts, that is, apart from the Balance Sheet and Profit and Loss account. These are:

  • Statement of Changes in Equity (no equivalent under current UK GAAP);
  • Statement of Comprehensive Income (similarities to STRGL); and
  • Statement of Cash flows (significantly differs from the Cash flow statement under current UK GAAP).


Furthermore, the new standards dictate a number of specific accounting provisions to be applied at transition date to convert the accounts from current UK GAAP at 31 December 2013 to opening amounts under the new standards at 1 January 2014. The results being numerous accounting remeasurements, once off options to fair value, assessment and changes of accounting policies and estimates for many key items.


For those starting to feel overwhelmed just thinking about all the implications and the additional workload, there is some good news.

The new standards provide a measure of relief from the general rule of having to apply all of FRS 102's accounting treatments retrospectively. This is achieved through a number of optional, and a few mandatory, exemptions to relieve entities from retrospective application for certain items. It is vital to gain knowledge of these exemptions, as they could save valuable time and energy.


Having mentioned some of the more specific points to keep in mind with an imminent conversion looming over our heads, it is important to emphasise that the accounting treatment of many key items will depart from their current treatment under UK GAAP. How the future treatment will change for your entity will however depend on the choice of accounting framework adopted by your entity from transition date.

What I am referring to is the option non-listed UK entities have to adopt either FRS 102 or IFRS from transition date. It seems accountants/management are often not aware of this alternative option provided by the new UK standards (FRS 100) - to elect IFRS instead of FRS 102. This alternative is being opted for by many, as it can prove very beneficial for some users - for example those that currently report IFRS numbers to a parent/group entity on a regular basis. Another appeal of opting for IFRS is that future developments in IFRS will also make their way into FRS 102 - for example the significant developments in accounting for leases and revenue recognition of late.

The pros and cons of adopting either IFRS or FRS 102, as well the important differences between IFRS and FRS 102 treatment and their first time adoption are explored on our FRS 102 courses - aimed at assisting entities to make an informed decision which will be in their best interest.

Whether an entity chooses FRS 102 or IFRS, the accounting treatment and financial reporting will need to adapt quite significantly from current UK GAAP.


Another important change worth mentioning, is that the current UK GAAP provision exempting certain users from having to prepare a Cash Flow Statement will no longer apply to most entities under the new regime. This change will most definitely have a great practical impact on entities and their resource requirements.


Furthermore, under FRS 102 (as with IFRS), the format of the statement is significantly different from that under current UK GAAP. Whereas the format under UK GAAP requires cash flows to be split into 9 headings, both FRS 102 and IFRS require a split into only 3 headings - operating, investing and financing activities. The statement's title has also changed to the Statement of Cash Flows.

The third considerable alteration is the definition of cash. Under FRS 102 and IFRS, the term used is cash and cash equivalents, compared to only cash under UK GAAP. Entities would therefore need to assess their short term, highly liquid investments, as some might qualify as a cash equivalent. Such amounts are to be reallocated from the investments balance to the cash and cash equivalents balance on the Balance Sheet and Statement of Cash Flows.


Under the new UK accounting standards, certain 'qualifying' entities are allowed to use the Reduced Disclosure Framework (FRS 101) - which provides considerable relief from the comprehensive disclosures otherwise required under the new regime.

It is important to note that the relief provided under FRS 101 may have an impact on an entity's decision whether to adopt FRS 102 or IFRS, as only entities adopting IFRS for their individual statements can be considered for FRS 101.

With an effective transition date of 1 January 2014, we appreciate the necessity for accountants and other finance professionals to gain knowledge, skills and a feasible plan of action to ensure a smooth conversion to the new UK accounting standards.

We look forward to welcoming you to one of our training events, where these and other key topics will be discussed in sufficient detail.

Ms Hermien Bonthuys

GetSmart Director & Course Presenter



Our FRS 102 courses have been designed to provide you with the necessary knowledge and practical know-how to effectively deal with first time adoption - and thereafter.

Click the titles below for course outlines, locations & scheduled dates. Please feel free to contact us should you have any questions.

All our FRS 102 courses provide:

  • detailed, interactive discussions of key changes & impact
  • relevant, illustrative examples to ensure principles are properly grasped (including calculations and journal entries)
  • additional handy resources such as model financial statements (including the new statements required by FRS 102) and illustrative examples of the additional disclosures required on first time adoption of FRS 102 or IFRS
  • sufficient time allowed for any questions we can help with
  • 7 CDP hours



Apart from our training courses, we provide specialist consulting services & assistance with implementation to help entities deal with the daunting process of first time adoption of FRS 102 or IFRS.

How we can help:

  • Impact analysis of accounting and financial reporting matters, as well as sufficiency of systems and personnel.
  • Conversion project plan tailored to your entity's needs.
  • Design of new accounting procedures within finance team structure to ensure the appropriate financial data is captured and prepared to feed the new accounting treatment and financial reporting requirements.
  • Assistance & support with the implementation of a conversion project.
  • Tailored training of entire finance team.


Contact us to arrange a free telephonic consultation with one of our FRS 102 specialists to discuss the potential impact of the new UK Accounting Standards on your entity.

Call us on 07714277119 or email This email address is being protected from spambots. You need JavaScript enabled to view it. for more information.