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:

  1. Identification of a contract
  2. Identification of promises
  3. Allocation of a transaction price
  4. Matching of the transaction price to the promises
  5. 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.

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