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A new standard

19 January 2016 / Paul Brown
Issue: 4534 / Categories: Comment & Analysis , Compliance

The corporation tax implications of the new accounting standard FRS 102.


  • The introduction of FRS 102 is likely to have far-reaching effects for tax purposes.
  • Loans not at a market rate of interest must be discounted.
  • The FRS 102 treatment of basic financial instruments is an amortised cost basis of accounting.
  • The treatment of intangible assets on business combinations will change.
  • Early discussion of implications with accounting colleagues should prove beneficial.


For many people like me old enough to remember the 2005 introduction of international financial reporting standards (IFRS) in the UK the tax impact of the changes to accounting standards was something of a non-event. Yes there was a clear impact on listed entities but even then most kept their subsidiary companies on the old UK generally accepted accounting practice (GAAP). Apart from a...

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