Key Differences Between UK GAAP and IFRS
Companies with securities admitted to trading on a regulated market are required to prepare their consolidated financial statements in accordance with IFRS. All other groups and companies in the UK have the choice to follow either IFRS or UK GAAP. With effect from January 1, 2015, financial reporting standards in the United Kingdom and Republic of Ireland were fundamentally revised, replacing the existing standards with five new Financial Reporting Standards (FRS) which are commonly referred to as new UK GAAP:
- 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
- FRS 103 Insurance Contracts
- FRS 104 Interim Financial Reporting
The overall goal of this new set of FRS is to provide users of financial statements with high-quality understandable financial information, proportionate to the size and complexity of the entity and users’ information needs. This white paper gives an overview of key differences between accounting policies under FRS 102 and full IFRS and should not be interpreted as exhaustive list. In each section, the respective accounting policy is first described under FRS 102 and then compared to the corresponding rules under IFRS.
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