The Financial Reporting Council sought responses to their proposed amendments to FRS 102 by 30 June 2017. These changes are expected to be finalised in December 2017, but they will not be effective until accounting periods starting on or after 1 January 2019.
The proposed alterations to the treatment of investment property within groups and giving companies the choice not to have to separate intangible assets from goodwill on business combinations are welcomed, as they have been onerous and unnecessarily complex for owner-managed businesses.
The proposals in Financial Reporting Exposure Draft (FRED) 67 have arisen as a result of the triennial review of FRS 102, and after taking account of stakeholder feedback on the implementation of FRS 102. The principal amendments proposed are simplifications designed to make it more cost-effective to apply and easier to use FRS 102.