Background

UK Generally Accepted Accounting Practice (UK GAAP) is developed and maintained by the Financial Reporting Council (FRC). UK GAAP in the form of FRS 100 ‘Application of Financial Reporting Requirements’ to FRS 105 ‘The Financial Reporting Standard applicable to the Micro-entities Regime’ has been in force since accounting periods commencing on or after 1 January 2015 (1 January 2016 for FRS 105).

Since 2005, companies with a listing on a regulated market in the European Economic Area (EEA) have been required to prepare their group consolidated financial statements using the International Financial Reporting Standards (IFRS). Even the issuance of listed debt on such a market requires the issuer to produce consolidated IFRS accounts.

From 1 January 2021, EU endorsed IFRS is replaced by UK endorsed IFRS as a result of the withdrawal of the United Kingdom from the EU. As at that date, EU-IFRS and UK-IFRS were identical, but the UK may decide to change UK-IFRS in future from time to time. The UK Endorsement Board is responsible for endorsing and adopting IFRS for