United States

Important changes to UK GAAP


Effective for periods beginning on or after January 1, 2015, Financial Reporting Standard (FRS) 102, The Financial Reporting Standard Applicable in the UK and Republic of Ireland, replaces prior United Kingdom (UK) generally accepted accounting principles (GAAP). FRS 102 differs from prior UK GAAP in a number of respects, including, among others, accounting requirements for leases, financial instruments, foreign currency, intangible assets, goodwill, pension schemes and deferred taxes. Changes resulting from the adoption of FRS 102 will impact the financial statements of most UK companies, so U.S. companies will need to be aware of the impact of such changes on their UK subsidiaries.