Wednesday, 23rd July 2014: The UK Financial Reporting Council (FRC) has today issued amendments to new UK and Irish GAAP to improve the accounting for certain financial transactions, which will also improve ease of use of the Standards and reduce the cost of compliance. The amendments to FRS 102:
relate to financial instruments:
updating the requirements on hedge accounting, making hedge accounting more readily available to entities where it is consistent with their risk management processes;
relaxing the conditions for regarding financial instruments as ‘basic’, with the effect that more financial instruments will be measured by reference to cost rather than fair value;
- make transition to FRS 102 less costly; and
- are effective from the same date as FRS 102, 1 January 2015.
Pursuant to its statutory mandate to cooperate in the development of accounting standards, IAASA has observer status at meetings of the Accounting Council of the FRC.
The amendments may be accessed via the FRC website here.