FRS 102 is a financial reporting standard that was introduced in the United Kingdom in 2013. It replaces previous UK GAAP and is designed to bring UK accounting standards in line with International Financial Reporting Standards (IFRS). FRS 102 is divided into four parts:
- The Framework for the Preparation and Presentation of Financial Statements
This part of FRS 102 sets out the overall principles that guide the preparation and presentation of financial statements. It includes guidance on the conceptual framework underlying financial reporting, the concepts of capital maintenance and accrual accounting, and the principles of going concern, prudence, and consistency.
- The Presentation of Financial Statements
This part of FRS 102 covers the specific requirements for the presentation of financial statements. It includes guidance on the format and content of the balance sheet, income statement, and statement of changes in equity, as well as the notes to the financial statements.
- The Recognition and Measurement of Assets and Liabilities
This part of FRS 102 sets out the principles for the recognition and measurement of assets and liabilities. It includes guidance on the recognition of various types of assets and liabilities, such as property, plant, and equipment, intangible assets, financial assets, and provisions. It also provides guidance on the measurement of assets and liabilities, including the use of historical cost, fair value, and present value.
- The Disclosure of Accounting Policies and Other Notes
This part of FRS 102 covers the requirements for the disclosure of accounting policies and other notes to the financial statements. It includes guidance on the types of accounting policies that must be disclosed, the format and content of the accounting policies note, and the presentation of other notes to the financial statements.
Overall, FRS 102 provides a comprehensive set of principles and requirements for the preparation and presentation of financial statements in the United Kingdom. It is designed to improve the transparency and comparability of financial reporting, and to bring UK accounting standards in line with international best practices.
