What is FRS 102 and why you need to know about it.

You may be asking what is FRS 102 and why you need to know about it, we’ve put together the key information on how it will affect you and your business.

Simply put FRS 102 represents the biggest change in the way your accounts are prepared for a generation.

Introduced on the 1st January 2015, FRS 102 has been implemented to simplify the reporting standards for SMEs (small and medium enterprises), taking previous multiple existing accounting practices such as the UK Generally Accepted Accounting Practices (UK GAAP) and International Financial Reporting Standards (IFRS), and rolling them in to one much more manageable set of practices.

A few of the changes you can expect include:

  • The new system will completely change the way that some assets and liabilities are valued and managed in your accounts.
  • You may see some different terminology in your accounts – for example if you wanted to look at debtors and creditors, you would now have to look for payables and receivables.
  • Depending on when your year end is, all SMEs will soon be seeing some effect of the accounting system – whether you are already reporting in the new standard, or you are currently having to adjust comparative figures in preparation for when you move from the old system to the new one.

If you have any questions about your current accounts and the impact of FRS 102, the team at Harvey Telford and Bates Chartered Accountants can assist, providing guidance on any issues through to a complete service including your general bookkeeping to preparing your annual accounts.

Our expertise ensures you have an accurate report of how well your company is performing that can assist you in financial planning decisions such as your tax planning or business forecasting so please get in touch to see how we can help you.