Implementing the triennial review changes to FRS 102

Entities reporting under FRS 102 will need to apply the Triennial Review 2017 amendments for accounting periods beginning on or after 1 January 2019. 

Early adoption

Early adoption is permitted provided all the amendments are applied at the same time (apart from the amendments to directors’ loans and the tax treatment in respect of gift aid payments, which may be adopted early on their own).  You can find out more on the advantages and disadvantages of early adoption within our article on the triennial review.


The FRC has provided a useful fact sheet which illustrates how some transactions may be dealt with on transition including:

  • Removal of undue cost or effort exemptions in Investments in Associates and Investment in Joint Ventures
  • Investment property rented to a third party
  • Investment property rented to another group entity
  • Classification of a basic financial instrument 
  • Simplified treatment for directors’ loans 
  • Simplified treatment for intangible assets acquired in business combinations
  • Definition of a financial institution 

Other requirements of FRS 102 

The following FRC fact sheets may also be useful when preparing your next report and accounts:

  • Property: how to account for a remeasurement to fair value for investment property and property, plant and equipment.
  • Accounting for undertaking a business combination for the first time covering:
    • An outline of the purchase method
    • The separation of intangible assets from goodwill
    • Illustrative disclosures 

For further information, please get in touch with Danielle Stewart.