FRS 102, ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ is the core of new Irish GAAP, providing a concise and simplified accounting framework for companies in its scope. FRS 102 replaces all current Irish accounting standards (SSAP’s, FRS’s, etc.) with a single financial reporting standard (FRS) and its introduction will lead to a change in accounting for most Irish companies. It represents the most significant change in accounting standard setting in a generation.
FRS 102 is mandatory for accounting periods beginning on or after 1 January 2015 so it is effective now and is likely to affect the preparation of your current set of financial statements. Although there is much similarity when looking at the big picture accounting requirements of the old Irish GAAP and its replacements contained in FRS 102, there are many differences in the detail. A full understanding of the impact the new accounting standards will have on your financial statements can only be determined, therefore, once a detailed understanding of those differences has been obtained.
Let our expert professionals in BDO assist you in your in transition to FRS 102. We anticipate that in the coming years a significant volume of guidance will be forthcoming in response to practical issues arising as FRS 102 is implemented throughout Ireland and the UK. We will be following these developments closely and can help you keep to abreast of and compliant with these evolving requirements.