What is FRS 102?
Answered 17 March 2026
What is FRS 102?
HMRC Guidance / Practice
FRS 102 is formally titled "The Financial Reporting Standard applicable in the UK and the Republic of Ireland". It is the single New UK GAAP standard (excluding micro-entities which choose to adopt FRS 105) that replaced existing UK accounting standards and abstracts from 1 January 2015 (with early adoption permitted subject to meeting the relevant criteria).
Key characteristics of FRS 102:
- Scope: It sets out in detail the requirements that entities adopting that standard will need to follow.
- Basis: It is based on IFRS for SMEs, which is a simplified form of IFRS. As a result, FRS 102 is similar to IFRS in many areas. However, it has been amended to comply with company law and to retain some accounting policies that were available under Old UK GAAP.
- Effective date: Accounting periods beginning on or after 1 January 2015.
- 2024 Amendments: FRS 102 has been subject to amendments in 2024, with HMRC manuals being updated to reflect these changes.
FRS 102 sits within a broader framework of New UK GAAP standards, which also includes:
- FRS 100 – Application of financial reporting requirements (overall framework)
- FRS 101 – Reduced disclosure framework
- FRS 103 – Insurance Contracts (for FRS 102 users)
- FRS 104 – Interim Financial Reporting
- FRS 105 – The standard applicable to the Micro-entities Regime (based on FRS 102 but with adapted requirements)
Citation sources
This manual is being updated to reflect FRS 102 (2024 amendments). For guidance on the tax treatment of accounts prepared under IFRS 16 or the revised FRS 102, please refer to pages within the BLM50000 chapter. This section is applicable to entities applying FRS 102 pre 2024 amendments or FRS 105, and for lessors only under IFRS 16 and FRS 102 (2024 amendments). See BLM17000 for lessee accounting under the on-balance sheet model under IFRS 16 and FRS 102 (2024 amendments). Lease classificati
FRS 101 and FRS 102 effective date was for accounting periods beginning on or after 1 January 2015 although early adoption was permitted subject to meeting the relevant criteria set out in each standard. An entity applying either FRS 101 or FRS 102 for the first time should recognise all financial assets and liabilities that qualify for recognition, and which have not yet qualified for derecognition. However assets previously recognised and then derecognised under previous GAAP need not be recog
New UK GAAP has now replaced Old UK GAAP for all companies. The new accounting standards are: Effective for periods beginning on or after 1 January 2015: FRS 100 (Application of financial reporting requirements) sets out the overall framework; FRS 101 (Reduced disclosure framework) sets out the reduced disclosure framework while importing the recognition and measurement principles of IFRS into UK GAAP (with some minor amendments); FRS 102 (The financial reporting standard applicable in the UK an