Chapter 5Summary of the Key Differences between FRS 102 and ‘Old’ UK GAAP

  1. Introduction
  2. Accounting Policies and Errors
  3. Statement of Cash Flows (Cash Flow Statement)
  4. Consolidated Financial Statements
  5. Deferred Taxation
  6. Defined Benefit Pension Plans
  7. Employee Benefits
  8. Fair Value Accounting
  9. Fixed Assets
  10. Goodwill and Intangible Assets
  11. Investment Properties
  12. Leases
  13. Revenue Recognition
  14. Inventory (Stock) Valuations
  15. Differences between FRS 102 and IFRS for SMEs


UK GAAP has been in existence for many years and financial reporting has evolved considerably over those years. The prevalence of International Financial Reporting Standards (IFRS) has gathered faster pace with many jurisdictions seeing the benefits of uniform financial reporting and hence the adoption of IFRS. In the UK and Republic of Ireland, it had been the intention by the (now defunct) Accounting Standards Board (now the Accounting Council of the Financial Reporting Council) that the UK and Republic of Ireland would adopt the use of an international-based financial reporting framework. This transition started in 2005 when all listed entities in the UK were mandated to apply EU-endorsed IFRS to their financial statements, closely followed in 2007 by those companies listed on the Alternative Investment Market. The decision to introduce an international-based framework in the UK was based on the fact that IFRS itself was becoming more widespread and the promotion of uniform accounting policies to give companies ...

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