Why FRS 102 matters to stakeholders

Author: Julie Mutton, James Kirk (

Categories: Financial Reporting
Tags: FRS 102

Where we have reported a profit in the past, it might now appear as a loss, may have significant assets, they might be reduced.

Now, every stakeholder needs to understand that and it might go the other way round, you might have reported a loss that now appears as a profit.  But every stakeholder needs to know that because if you’re a banker looking to lend money to a company, they’ll need to understand why it’s different.

If you’re a shareholder looking to maximise return when you come to sell your business you need to understand what it is that’s different about the financial reporting standards so you can explain that to would be buyers who are not just flicking through thinking, you know, why does this look so different to what I might have expected in the past from a set of accounts for a company.

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