The fourth edition of Financial Reporting Standard 102 ("FRS 102") has now been issued by the Financial Reporting Council.

This edition incorporates the triennial review amendments from December 2017.  These are primarily clarifications, rather than fundamental changes, of existing accounting treatments. 

One of the most significant alterations, however, is the removal of the “undue cost or effort” exemption for investment property, meaning that such properties must now be measured at fair value.  Positively, though, for investment properties rented to other group entities, an accounting policy choice has been introduced between measurement at cost or at fair value, which may help to avoid some of the difficulties which have been experienced to date in such situations.