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FRS 102: Financial instruments under UK GAAP

FRS 102 Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues set out the requirements for the recognition, derecognition, measurement and disclosure of financial assets and financial liabilities. Section 12 includes the requirements for derivatives and hedge accounting.

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Access the standard

The requirements relating to specific topics are set out as sections within FRS 102. However, individual sections of the standard should not be looked at in isolation as other parts may be relevant.

FRS 102 is regularly updated and amended by the Financial Reporting Council (FRC). For the full text of FRS 102, guidance on which version of the standard to apply and notes on recent amendments, see our main FRS 102 page.

ICAEW factsheets and guides

The Corporate Reporting Faculty's annual UK GAAP factsheets provide a more detailed discussion of recent UK GAAP amendments.

Exclusive Financial instruments: FRS 102 factsheet
  • Helpsheets and support
  • 05 Jan 2023
  • PDF (495kb)
Summarising the requirements of FRS 102 for basic and other financial instruments, this factsheet includes practical tips and illustrative examples.
Exclusive FRS 102 Financial Instruments - Hedge Accounting
  • Helpsheets and support
  • 15 Dec 2022
  • PDF (510kb)
This factsheet outlines the key requirements of FRS 102 in respect of hedge accounting and includes practical examples on their application.
Exclusive Loans at non-market rates under FRS 102
  • Helpsheets and support
  • 06 Jul 2022
  • PDF (482kb)
This short guide outlines, and illustrates by example, the accounting requirements of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland applicable to loans that are provided interest free or at below-market interest rates, a common example of which are intercompany loans.
Loans at non-market rates under FRS 102
  • Helpsheets and support
  • 06 Jul 2022
This guide outlines the accounting requirements of FRS 102 applicable to loans that are provided interest free or at below-market interest rates, a common example of which are intercompany loans.
Exclusive Hedge accounting under FRS 102
  • Helpsheets and support
  • 02 Feb 2022
Technical helpsheet issued to help ICAEW members to understand aspects of hedge accounting under FRS 102.
Renegotiating loan contracts under FRS 102
  • Helpsheets and support
  • 08 Jun 2021
This guide outlines the accounting requirements under FRS 102 when loan contract terms are renegotiated together with illustrative examples.
Exclusive Foreign currency translation under FRS 102
  • Helpsheets and support
  • 19 Sep 2018
Technical helpsheet issued to help members understand foreign currency translation under FRS 102.

eBooks

The ICAEW Library & Information Service provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Exclusive Financial liabilities and equity
  • eBook chapter
  • 2019
  • Rob Carrington, Ernst & Young
  • UK GAAP 2019 - Generally Accepted Accounting Practice under UK and Irish GAAP
Guide from 2019 focusing on each area of the financial statement in detail with illustrative examples. This chapter gives a comparison of FRS 102 Section 22 and IFRS, discusses contingent settlement provisions, recognition and measurement of issued equity instruments, and highlights provisions for other specific instruments and transactions.
Exclusive Financial instruments
  • eBook chapter
  • 2019
  • Rob Carrington, Ernst & Young
  • UK GAAP 2019 - Generally Accepted Accounting Practice under UK and Irish GAAP
Guide from 2019 focusing on each area of the financial statement in detail with illustrative examples. This chapter gives a comparison of FRS 102 Sections 11, 12, 22 and IFRS, and looks at recognition and measurement accounting policy choice, financial liabilities and equity, classification, initial recognition and measurement, subsequent measurement, derecognition, hedge accounting, presentation and disclosures.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Bloomsbury Accounting and Tax Service.

Exclusive Basic financial instruments
  • eBook chapter
  • 2024
  • Steve Collings
  • Bloomsbury Professional
A chapter providing practical guidance on financial reporting of basic financial instruments under FRS 102, section 11 and FRS 105, section 9.
Exclusive Non-basic financial instruments
  • eBook chapter
  • 2024
  • Steve Collings
  • Bloomsbury Professional
A chapter providing practical guidance on financial reporting of complex financial instruments under FRS 102, section 12.
Exclusive Financial instruments
  • eBook chapter
  • 2023
  • Steve Collings
  • Bloomsbury Professional
Chapter on financial instruments in this guide to all aspects of UK auditing standards and UK GAAP accounting standards.
Exclusive Financial instruments
  • eBook chapter
  • 2021
  • Julia Penny
  • Bloomsbury Professional
A chapter on accounting for financial instruments under FRS 102, in this accessible introduction to the accounting rules relevant to tax computations in the UK.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

Other resources

UK Accounting Plus
  • Website
  • Deloitte

Overviews of each UK accounting standard, with a history and timeline of key events and amendments.

UK GAAP model accounts and disclosure checklists Example financial statements and disclosure checklists for UK GAAP available from the ICAEW Library & Information Service, Bloomsbury and other sources.

Further support

Financial reporting helpsheets
Corporate reporting resources

Practical resources including factsheets, online guides and webinars on financial and non-financial reporting.

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