We will help you understand the implications of New UK GAAP and to make the correct choices for your business


The UK's Financial Reporting Council (FRC) has fundamentally changed the financial reporting landscape in the UK with the introduction of four new standards that will impact on companies following current UK GAAP.

FRS 100 sets out the financial reporting requirements for entities and identifies whether they need to produce their consolidated or individual financial statements in accordance with EU IFRS, FRS 102 or (for periods beginning before 1 January 2016) the Financial Reporting Standard for Smaller Entities (FRSSE). Micro entities may be able to use FRS 105.

It does not extend the mandatory application of EU-adopted IFRS beyond the current requirement of the IAS Regulation or market rules.

In the absence of such a requirement to prepare EU IFRS financial statements, the individual accounts or consolidated accounts of any entity within the scope of the proposals would be prepared in accordance with:

  • FRS 101 for the individual accounts of a qualifying entity
  • FRS 102 and FRS 103
  • FRSSE (if the entity is eligible to use the FRSSE).
  • FRS 105 (if the entity is eligible to be a micro entity)
  • Commercial & practical considerations

Some of the more common areas which you should consider are: 

  • Does the company have any agreements which are based on the reported numbers?
  • Which wider business planning activities will be impacted by the change?
  • What impact will there be on distributable reserves, if any?
  • Does the company have any group reporting responsibilities?
  • Will existing accounting systems need to be updated?
  • What staff training will be required for transition?

How BDO can help

To enable you to make an informed decision on which accounting framework to use, we can carry out a high level analysis for each of the framework options available to you covering:

  • Key financial statement areas
  • Key tax issues 
  • Terms of existing financing to identify covenants that may be breached due to different reporting measures
  • Other commercial issues, for example distributable reserves issues. 

Once you have decided which accounting framework you are going to adopt, we can identify the precise implications of the changes and first time adoption adjustments on your financial statements.