In the UK it is the Companies Act 2006 that is the primary legislation when it comes to financial reporting. This act has integrated European law, which since 2005 has required that all listed European companies adopt the IFRSs. Another aspect of the Companies Act is that it requires limited companies to file their accounts and financial statements with Registrar of Companies, who in turn make them publicly available.
GAAPs in the UK have seen a greater movement towards the principles of the IFRS, and this standardisation has meant the differences between the two have been greatly reduced. Unlisted companies in the UK have the choice of whether they wish to report under IFRSs or under UK GAAPs. However the recent implementation of then new FRSs (see below) means that there are now even more similarities shared with IFRSs.
Old GAAPS vs. New GAAPs
Since 1 January 2015, there has been a change in the GAAPs in the UK. These developments have not affected companies previously subject to EU-IFRS laws and regulations. These companies continue to do so. On the other hand, companies who do not wish to follow the EU-IFRS standards can choose from FRS 100, 101, FRS 102, FRS 103, FRS 104, and FRS 105. The table below outlines the details of these various standards: