December 20, 2022
Article
The FRC has released its Financial Reporting Exposure Draft 82, being the periodic review of FRS 102 as a little festive reading project for us all!
The consultation period is open from now until 30 April 2023. The proposed effective date of the revised standard being 1 January 2025.
The key proposed changes are:
1. Revenue recognition in FRS 102 & FRS 105
A new Revenue Recognition model is proposed based upon IFRS 15 and the following 5 step recognition process:
- Identification of a contract
- Identification of promises
- Allocation of a transaction price
- Matching of the transaction price to the promises
- Recognition of revenue based on fulfilment of promises
2. Lease accounting in FRS 102 (not applicable to FRS 105)
A new method of presenting leases based on IFRS 16, requiring recognition on the balance sheet of a right of use asset and a corresponding lease liability
3. Enhanced disclosures for small entities
Previously encouraged disclosures in FRS 102 section 1A appendix E becoming mandated
Collaborate to Achieve
If you would like to discuss how the exposure draft may impact your financial reporting contact your usual Albert Goodman contact or Sophie Parkhouse direct.