Implementing FRS 102
Implementing FRS 102
‘A Practitioner’s Perspective’
New UK GAAP
…..for periods beginning on or after
1 January 2015 ……
three new Financial Reporting
Standards FRS 100, 101 and 102 ……
…..are now in force, bringing with them a
number of new options for all UK entities
and groups.
Implementation……
 Decision made to pilot delivery using new
formats from August 2014 for as many of the
NC/HNC/HND units as possible
 New layouts and terminology affecting most of
the units (to a greater or lesser extent)
Implementation……
 New layouts used for:
 Sole Trader
 Partnerships
 Limited Companies
 Statement of Cash Flows
Implementation……
 Some lesser impacts within:
 Cost Accounting
 Management Accounting Using Information
Technology
Implementation……
Overall impacts are not significant:
 Terminology
 Formats/Style
Implementation……
Overall impacts are not significant:
 Sole Trader
Implementation……
Overall impacts are not significant:
 Partnerships
Implementation……
Overall impacts are not significant:
 Limited Company
Implementation……
Overall impacts are not significant:
 Statement of Cash Flows
Implementation……
Overall impacts are not significant:
 Ratio analysis
Implementation……
Overall impacts are not significant:
 Budgets (MAUIT)
Implementation……
Overall impacts are not significant:
 Marginal vs Absorption (MAUIT)
Students’ comments……
 “….it’s not really made much difference changing
from the old to the new….”
 “….don’t know the difference as I have not been
taught any different…”
 “……….Oot with the old………”
Students’ comments……
 “….much prefer the new way of working, easy to
remember wording and layouts ….”
 “….Prefer new system, easier to remember as
new names explain more clearly what they are…”
 “….i preferred the old layouts as I had an
understanding of it from what I was taught in
school……”
Students’ comments……
 “….getting used to it now..… the new layouts are
more satisfactory ….”
 “….It’s okay…….preferred the old method
though.…”
On balance……
 It’s been well received by students
 Most don’t know any difference
 ‘Interim evidence’ suggests students coping well
i.e. pass rates/achievement have increased..!!!
Reflections….
 An opportunity to present a more consistent
framework of layouts across the whole syllabus
 Terminology consistent
 Less variation in styles within exemplars
 Students transfer knowledge and skills across
units
Reflections….
 Initial workload to convert may be time-consuming
 No further changes will be anticipated
 Reflects current practice
 CPD requires this anyway….!!
Reflections….
 Sufficient support materials provided by SQA e.g.
– Sample layouts available
– Worked examples available
– Updated exemplars available
www.sqa.org.uk I 0303 333 0330