Review of existing accounting policies

At an early stage entities will need to perform a detailed review of whether their current accounting policies meet the requirements of FRS 102 Financial Reporting Standard applicable in the UK and Ireland, and whether change is necessary or desirable.

In some cases the requirements under FRS 102 will be different from previous UK GAAP and changes in accounting policy will be inevitable. However, transition to FRS 102 can also provide an opportunity to look again at current accounting policies and reconsider their appropriateness to the business. In some cases there will also be accounting options that were not previously available.