CFM20030 - Accounting for corporate finance: when changes to UK GAAP are effective

When changes are effective

The relevant UK GAAP for accounting for loan relationships and derivative contracts is contained in FRS 25 (‘Financial Instruments: presentation’), FRS 26 (‘Financial Instruments: measurements’), and FRS 29 (‘Financial instruments: disclosures’). For accounting periods beginning on or after 1 January 2005, that part of FRS 25 dealing with the presentation of financial instruments in accounts had to be followed by all companies except those applying the FRSSE.

Listed companies were required to adopt FRS 26 (Financial Instruments: Measurement) for accounting periods beginning on or after 1 January 2005, and were also required to adopt the disclosure requirements of FRS 25 from the same date. This affects listed entities using UK GAAP.

For accounting periods beginning on or after 1 January 2007, the disclosure requirements of FRS 25 apply to all companies other than those using FRSSE, as do the requirements of FRS 26.

Details of the changes to UK GAAP and their relationship to IAS are at CFM21040.