United Kingdom


  • Industry: Government & Public Sector, Education
  • Type: Business and industry issue
  • Date: 16/06/2014

Are you ready for FRS102? 

On 14 March 2013, the Financial Reporting Council issued a new financial reporting standard (FRS). Called FRS102, it provides unlisted entities with requirements on concise reporting and accounting.


KPMG Director Clare Partridge identifies what institutions need to do to be ready for FRS102.


Understand the financial impact and expected volatility on your results:


  • You will need to make key accounting policy decisions on the treatment of government grants and fixed assets. These policy decisions will affect your net asset position and annual result in the future. It is therefore critical that the impact of these policies is properly considered and approved.


Liabilities will increase with the potential inclusion of:


  • deferred capital grants within deferred income
  • student accommodation schemes on balance sheet
  • Universities Superannuation Scheme (USS) liabilities being recognised


Start up-skilling staff and develop a wider training strategy:


  • Do you have the skills in-house to manage an efficient and smooth conversion process?
  • Do you need additional technical and project management support or assurance throughout your conversion?


Plan so that all stakeholders understand
the change:


  • You may want to ensure that you can defer income in line with costs for grants from non-government sources. If so, you may want to change contractual details in advance of transition.
  • If you are considering any new accommodation schemes, understand the triggers for accounting changes. Small differences in contractual terms can give rise to very different accounting outcomes.


Know how your systems and processes may need to


  • Don’t underestimate the time and complexity required to update management and financial reporting processes, budget setting, resources allocation and key performance indicators (KPIs).
  • Will you need to develop systems to capture data and when do you need to do this? For example does your research register capture joint research contracts?

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Clare Partridge


Clare Partridge

Director, KPMG


0113 231 9322