FRC defers decision on updating FRS 102 for major changes in IFRS

30 June 2017

FRC published a feedback statement summarising respondents’ comments to its Consultation Document on updating FRS 102 for changes in IFRS. The statement also sets out the FRC’s revised approach.

The Consultation Document was issued in September 2016 and asked for views on whether FRS 102 should be kept up to date with IFRS as IFRS changes, particularly in relation to major new standards that have been issued, and provided an outline timetable for possible changes in relation to financial instruments, revenue and leases.  Respondents’ feedback showed support for a long‑term aim of broad consistency with IFRS, but questioned the proposed timetable and suggested more IFRS implementation experience is needed before an assessment of whether, and if so, how and when requirements based on these standards should be considered for incorporation into FRS 102.

The FRC agrees that further evidence-gathering and analysis needs to be undertaken before any proposals to reflect the principles of the expected loss model of IFRS 9, IFRS 15 and IFRS 16 in FRS 102 could be made.  Therefore, the FRC will not be issuing a triennial review phase 2 exposure draft later this year.

IFRS 17 has been issued since this consultation took place.  The FRC has previously said that FRS 103 would be reviewed once the IASB had completed IFRS 17.  The FRC still intends to review FRS 103 at a suitable time, but consistently with the approach to other major new IFRS, this is likely to take place once more IFRS implementation experience is available.

Full press release

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