The amendments update UK and Republic of Ireland accounting standards for changes in legislation following the UK’s exit from the European Union that come into effect at the end of the Transition Period.

The amendments are limited to those necessary to ensure consistency with UK company law and largely update legal references and terminology used in the standards.

The effective date for the amendments is accounting periods beginning on or after 1 January 2021, with early application permitted for UK entities in certain circumstances.

The FRC has also issued Amendments to FRS 102 – Interest rate benchmark reform (Phase 2).

These amendments respond to the financial reporting issues arising from interest rate benchmark reform, and are intended to adapt and simplify accounting requirements in that context and provide disclosure of the nature and extent of the risks arising, thereby minimising reporting costs for entities applying FRS 102 and enabling them to provide useful information to the users of their financial statements.

The amendments are effective for accounting periods beginning on or after 1 January 2021, with early application permitted.

The Impact Assessment for accounting standards UK exit from the EU is available here.

The Impact Assessment and Feedback Statement for Amendments to FRS 102 is available here.