FRS 101 and FRS 102 Tackling the implementation of new statutory financial reporting standards
In the last 18 months, organisations in the UK have been impacted by major legislative changes that have transformed the statutory financial reporting environment for companies, charities and LLPs. For accounting periods beginning on or after 1 January 2015 ‘old UK GAAP’ was replaced with full IFRS, FRS 101 (IFRS with reduced disclosures) or FRS 102 (new UK GAAP).
These major changes to accounting standards in the UK have affected accounting periods beginning on or after 1 January 2015 and organisations are still adapting to this transition.
What is FRS 101 and FRS 102?
The Financial Reporting Council fundamentally revised financial reporting standards in the United Kingdom and Republic of Ireland, replacing almost all extant standards with three Financial Reporting Standards:
- FRS 100 Application of Financial Reporting Requirements;
- FRS 101 Reduced Disclosure Framework;
- FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
New Whitepaper: Key Benefits To Managing New UK GAAP Reporting With TechnologyDownload your copy.
FRS 101 sets out a reduced disclosure framework which addresses the financial reporting requirements and disclosure exemptions for the individual financial statements of subsidiaries and ultimate parents that otherwise apply the recognition, measurement and disclosure requirements of EU-adopted IFRS.
FRS 102 was a new UK GAAP standard based on the IFRS for SMEs and replaced ‘old’ UK GAAP with a standard of fewer than 350 pages. Most large and medium-sized UK entities have applied FRS 102 apart from those who are required or elect to prepare accounts under IFRS.
In September 2014, the FRC published a new XBRL taxonomy – now the HMRC accepts accounts tagged with the new taxonomy (for any accounts prepared after 1 April 2015).
Who is affected by these changes?
Finance departments have seen the majority of accounts impacted by the adoption of these new standards. The year-end reporting process is driven by tight deadlines and these regulatory changes have only added to the pressure already weighing on finance departments.
We’re ready. Are you?
Thomson Reuters can assist you with FRS software solutions, technology, research tools, and global expertise to stay ahead and solve statutory reporting challenges under the new standards. We have been working closely with many organisations to help this transition and ensure the benefits of Accounts Production technology are leveraged.
What are the benefits of an automated solution? | Solutions for FRS 102, FRS 101 and IFRS
Statutory reporting solutions automate reporting processes and can minimise the disruption of reporting transitions. FRS 101 and FRS 102 solutions like ONESOURCE deliver reporting templates that are compliant with new standards and automatically tag reports with the latest iXBRL taxonomies – a task previously managed manually in spreadsheets and documents.
What is the solution for a successful, seamless transition?
Although the new legislation has posed challenges, it is also a platform for implementing best practices and making statutory reporting easier in the coming years. There are two ways that you can leverage this legislative transition to maximise your tax reporting:
- Assess your tax and accounting processes now to determine a more streamlined workflow between key stakeholders and the business.
- Use technology to automate routine tasks, enforce controls and increase efficiency. This will result in significantly less time spent on producing statutory accounts and more time spent on strategic projects that add value to your business.
Why choose ONESOURCE Accounts Production? | Software for FRS 102, FRS 101 and IFRS
Thomson Reuters positioned customers for this transition by issuing our first IFRS template in April 2012, followed by FRS 101 in August 2013, and FRS 102 in September 2014, with our market-leading IFRS, FRS 101 and FRS 102 software.
Not only have we established ourselves as experts in Accounts Production reporting, but utilising ONESOURCE Accounts Production software helps you save time, resources and expenses through its improvement of controls, automation, accuracy and efficiency. It is our goal to make the lives of finance teams easier by giving them control, the appropriate templates, and the opportunity to focus on value added activities for the business.
Download our ebook to learn more about technology for statutory reporting, covering key topics:
- Software includes latest FRS 101 and FRS 102 templates
- How to achieve faster turnaround
- Heightening accuracy with automation
- Improving consistency and quality with less effort
- Dealing with audits easily with complete audit trail
- One-time data capture
- Automated iXBRL tagging
- Finding the balance between flexibility and control