FRS 102 to be published in March

Delays to the publication of the long-anticipated FRS 102 – the replacement for UK GAAP - look set to end in March, the Accounting Council of the Financial Reporting Council (FRC) has confirmed, reports Harris & Co Accountants Northampton

An FRC spokesman said: ‘We expect the board to approve it at the next board meeting on 5 March’.

Publication had originally been expected in October 2012, then the date was shifted into early 2013. Industry insiders had expected to see the new standard by mid-February this year.

A limited scope exposure draft was released in October 2012. It proposed a number of amendments to FRED 48 - the draft FRS 102 - in relation to accounting by employers taking part in defined benefit multi-employer pension plans. Additional guidance is also proposed for grantors of service concessions.

It set out two limited scope amendments relating to multi-employer defined benefit pension plans and grantors of service concession arrangements.

The amendment for multi-employer pensions relates to accounting in specific circumstances where there is an agreement to fund a deficit in a multi-employer pension plan. This is proposed following evidence of diversity in practice in the application of FRS 17 Retirement Benefits.

In making this proposed amendment the FRC also noted that the current requirements of paragraph FRS 17 paragraph 9(b)(v), which requires disclosure of any implications for an employer of a deficit in a multi-employer scheme.

Entities participating in multi-employer defined benefit schemes will need to give careful consideration to compliance with this requirement where they have agreed a schedule of funding for a deficit. The amendment is only likely to affect a small proportion of entities applying UK accounting standards.

The second amendment relates to accounting, by grantors, for service concession arrangements. This amendment is proposed in response to feedback from respondents and sets out proposed accounting requirements for grantors.

The FRC anticipates FRS 102 will be effective for accounting periods beginning on or after 1 January 2015; early adoption is permitted.