Understanding UK Financial Reporting Standards: A Friendly Guide
The UK Reporting Landscape in One View
In the UK, the Financial Reporting Council oversees corporate reporting and audit, while the UK Endorsement Board approves international standards for UK adoption. The Companies Act 2006 anchors legal requirements, and sector SORPs tailor guidance. Share your experiences navigating these guardians.
The UK Reporting Landscape in One View
Most private entities use UK GAAP, built around FRS 100 to 105. Premium listed groups use UK‑adopted IFRS. IFRS can be more granular, especially for leases, revenue, and financial instruments, while UK GAAP aims for proportionality. Which path fits your group and why?
FRS 102 Essentials You Will Actually Use
Core recognition and measurement principles
FRS 102 addresses property, plant, and equipment with cost or revaluation, intangibles with finite lives and default amortisation if life is unclear, and deferred tax using a timing differences approach. Sections 11 and 12 cover financial instruments. Subscribe to get a practical checklist for period end.
FRS 105 for Micro‑entities: Simple, Not Simplistic
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FRS 105 uses mostly historical cost, prohibits revaluations, omits deferred tax, and limits disclosures to a very concise set. That keeps compliance lean but reduces flexibility. If you have growth plans or external investors, consider whether these limits fit your story. Share your decision factors.
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If you rely on property revaluations, sophisticated financial instruments, or nuanced revenue recognition, the micro regime can obscure performance. Banks may request fuller information. Some choose FRS 102 Section 1A for a better balance. Ask your questions and we will address them in our next post.
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Watch director loan classifications, ensure revenue cut‑off is robust, and separate distributable profits from accounting profit. Even simplified standards demand careful judgments and documentation. Subscribe to receive a micro‑entity month‑end pack you can tailor to your business rhythm.
IFRS in the UK: Listed and Beyond
UK‑adopted IFRS and the endorsement process
Following Brexit, the UK Endorsement Board evaluates and endorses IFRS for UK use. Differences from EU adoption are usually limited but monitored. Listed companies follow FCA rules and maintain market‑driven discipline. Comment if you have faced endorsement timing issues in your group reporting cycle.
FRS 101 Reduced Disclosure Framework for subsidiaries
FRS 101 lets qualifying subsidiaries use IFRS recognition and measurement with reduced disclosures in individual accounts. It can cut clutter and align numbers with group. Governance steps, including stating use of exemptions, still apply. Tell us whether FRS 101 eased your consolidation headaches.
Strategic report and Section 172 statement
Large companies present strategy, business model, and stakeholder considerations, including how directors fulfilled duties under Section 172. The best examples connect metrics to decisions and future outlook. Share a report you admire, and we will analyse what makes it compelling.
Going concern and viability disclosures
Robust going concern assessments include scenario analysis, stress testing, and transparent mitigation plans. Clear, entity‑specific disclosures build trust, especially when headwinds arise. What questions do your audit committee ask here? Leave a comment and we will compile a community checklist.
Climate and ESG reporting in the UK context
Premium listed companies report against climate frameworks such as TCFD, and broader sustainability standards are evolving in the UK. Integrate climate risks into principal risk narratives and financial assumptions. Subscribe to stay updated as new sustainability disclosure standards crystallise.
From Policy to Practice: A CFO’s Two‑Week Close Story
Facing customised contracts and performance milestones, the team mapped obligations, set a policy for variable consideration, and aligned system fields to track progress reliably. A concise memo anchored the judgments. Have you solved similar issues differently? Share your approach for our readers.
From Policy to Practice: A CFO’s Two‑Week Close Story
Leases were everywhere, from forklifts to embedded services in supply contracts. A cross‑functional sweep identified terms, options, and indices, building a living register for recognition and reassessment. Comment if you want our template for capturing critical lease data points efficiently.
