UK regulator the Financial Reporting Council (FRC) set out Monday a series of amendments to UK and Ireland accounting and reporting standards to address topical issues such as COVID-19-related rent concessions and maintaining the necessary alignment with international standards.
The amendments are:
Amendment to FRS 101, Reduced Disclosure Framework: Effective Date of IFRS 17: This amendment changes the effective date of an amendment to the definition of a qualifying entity, effectively allowing relevant insurers to continue to apply FRS 101 for a further two years. The revised effective date for the new definition of a qualifying entity is accounting periods beginning on or after 1 January 2023.
The FRC also issued an impact assessment.
Amendments to FRS 102, The Financial Reporting Standard Applicable in the UK and Republic of Ireland, and FRS 105, The Financial Reporting Standard Applicable to the Micro-entities Regime: COVID-19-related rent concessions: These amendments to FRS 102 and FRS 105 set clear requirements for recognising changes in operating lease payments arising from COVID-19-related rent concessions on a systematic basis over the periods the change in lease payments is intended to compensate. The amendments are effective for accounting periods beginning on or after 1 January 2020, with early application permitted.
The FRC also issued an impact assessment and feedback statement.
Amendments to FRS 104, Interim Financial Reporting: Going Concern: These amendments clarify and enhance requirements relating to the going concern basis of accounting in respect of interim financial reports. The amendments are effective for interim periods beginning on or after 1 January 2021, with early application permitted.
The FRC also issued an impact assessment and feedback statement.
Exposure drafts proposing the amendments relating to going concern and COVID-19-related rent concessions were set out in July.
— Oliver Rowe (Oliver.Rowe@aicpa-cima.com) is an FM magazine senior editor.