Key differences between UK GAAP and IFRS

whitepaper 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

Contents

Key differences between FRS 102 and IFRS 

  • Statement of financial position 
    •  Intangible assets 
    •  Property, plant and equipment 
    •  Investment property 
    •  Financial instruments & Deferred taxes 
  • Statement of comprehensive income 
    • Revenue recognition & Borrowing costs 
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