FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland requires entities to disclose the carrying amounts of certain types of financial instruments analysed into different categories as prescribed by paragraph 11.41. This new note has proved to be a source of confusion for many with differing views as to what might be included or excluded. Should all financial instruments be included? Should the note include cash and/or bank overdrafts? Accruals and prepayments? Should the note reconcile to the amounts included in the balance sheet?
In our latest FRS 102 Update Disclosure of Categories of Financial Assets and Financial Liabilities, the Financial Reporting Faculty answers some of the frequently asked questions on the disclosures required by paragraph 11.41 and provides practical guidance as to how the requirements might be applied in practice.
The FRS 102 Update Disclosure of Categories of Financial Assets and Financial Liabilities is freely available to download by ICAEW and Financial Reporting Faculty members.