UK GAAP: A periodic review
Event summary
Hear from the UK Financial Reporting Council’s (FRC) Director of Accounting Policy, Jenny Carter, about the proposed changes to UK GAAP(Generally Accepted Accounting Practice) as set out in ‘Financial Reporting Exposure Draft 82: Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review’.
Changes to UK GAAP are expected to come into force for accounting periods beginning on or after 1 January 2025, with early adoption permitted provided all amendments are applied at the same time.
This webinar is of interest to anyone preparing financial statements or advising on their preparation, or auditing financial statements prepared in accordance with UK GAAP.
(Duration 1 hour. Originally recorded on 23 February 2023)
Key themes and topics
- Developments in UK financial reporting
- Periodic review of FRS 102 and other FRSs
- An overview of the FRC consultation document: Financial Reporting Exposure Draft 82
Speakers
- Host: James Barbour CA, Director, Policy Leadership at ICAS
- Jenny Carter, Director of Accounting Policy at the UK Financial Reporting Council
(Please note that views and opinions expressed by speakers at ICAS webinars are their own and not necessarily reflective of ICAS’ views.)
Who’s this for?
- ICAS Members
- ICAS Students
- Non-Members
Counts as CPD activity
Depending upon your individual role and training and development needs, watching this webinar can count towards your annual Continuing Professional Development (CPD) requirement.
UK GAAP webinar poll results
During the webinar we polled the participants to gauge their initial views on the proposed changes to UK GAAP. For two of the poll questions, views were requested based on whether participants worked in business or in practice. The results were as follows:
Question 1 - Do you support the proposal to make the recommended disclosures in Section 1A of FRS 102 compulsory?
Working in business
- 24% support the proposed recommended disclosures
- 12% do not support the proposed recommended disclosures
Working in practice
- 24% support the proposed recommended disclosures
- 1% do not support the proposed recommended disclosures
All participants in the poll
- 39% are currently undecided
N.B. The results for those working in business and those working in practice are expressed as a percentage of all participants responding to the poll question.
Question 2 - Do you agree with the FRC’s decision not to introduce IFRS 9’s expected credit loss model for financial assets within the next edition of FRS 102?
- 20% agreed that the decision should be postponed until the next periodic review
- 46% agreed that IFRS 9’s expected credit loss model should never be brought in
- 3% disagreed, believing that IFRS 9’s expected credit loss model should be brought within UK GAAP
- 32% are currently undecided
Question 3 - What impact will introducing the five step model for revenue recognition from contracts with customers have on your business or the business of your clients?
Working in business
- 45% said the five step model will have no impact on revenue recognition by their business
- 4% said revenue will be recognised later
- 1% said revenue will be recognised earlier
Working in practice
- 19% said it will have no impact on the timing of revenue recognition for most of their clients
- 1% said revenue will be recognised later by most of their clients
- 0% said revenue will be recognised earlier by most of their clients
All participants in the poll
- 29% said it is too early to tell
N.B. The results for those working in business and those working in practice are expressed as a percentage of all participants responding to the poll question.
Question 4 - For businesses with operating leases applying FRS 102, will the new on balance sheet treatment enhance the quality of financial information available to financial statement users, including investors and lenders?
- 46% agreed that the proposals will enhance the quality of financial information
- 36% disagreed
- 18% concluded that it is too early to tell
Not all polls add up to 100%, this is due to automatic rounding by the software.
