Simpler and better financial reporting for UK companies is on its way
8 March 2013
The announcement by the Financial Reporting Council of the imminent publication of FRS102, a comprehensive and unifying replacement for the current UK GAAP, marks a real and optimistic change for UK financial reporting.
Veronica Poole, UK national head of accounting at Deloitte, commented: “UK GAAP had become a patchwork of old UK standards, guidance and other reporting standards. Now UK companies will have a coherent framework which will enable them to prepare accounts in a common-sense fashion. The new standard is a single, short and comprehensive standard based on international standards which will bring about a much-desired simplification overall. The UK is leading the way on promoting good reporting which is proportionate to the size and type of entity.
“The standard has been through a long and painstaking process of consultation and decision-making which has seen the reinstatement of many popular UK accounting options. As it is based on international standards, it will get UK accountants talking the same international language.”
The new standard will affect nearly all UK companies to some degree and businesses need to start thinking about the choices available to them. The standard is mandatory for periods beginning on or after 1 January 2015 and that means that some actions will be required well ahead of time with a transition date which could be as early at 1 January 2014.
Notes to editors:
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.