FRS 102 introduces some choice of terminology, adopting terms which are more commonly used in IFRS and US GAAP. We expect many UK companies to retain the familiar UK terms, but companies with significant stakeholders outside of the UK may wish to adopt the terminology that will be familiar to overseas readers. This will entail adopting an “International” format balance sheet and P+L instead of using the Companies Act version. Directors may wish to consider whether adopting new terminology will help to signpost that the new regime has been applied or whether they would prefer to use language that will be familiar to users.
The table below shows some of the common differences between existing UK terms and those used by FRS 102.