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Subsidiaries under new UK GAAP

Section 9 and section 33 of the accounting standard FRS 102 cover issues relating to subsidiaries. On this page you can access a range of articles, books and online resources providing useful links to the standard, summaries, guidance and news of recent developments.

FRS 101: Reduced disclosure framework sets out rules applying to individual financial statements of subsidiaries and ultimate parents.

General guidance and information is also available from our FRS 102 page.

Issues relating to subsidiaries were dealt with in FRS 2 and FRS 8 under old UK GAAP. Both standards have been superseded by FRS 102.

What's on this page?

  • Full-text standard
  • Model accounts
  • Guidance and support from ICAEW
  • eBooks
  • Guides
  • Online articles
  • Articles and books from the Library

Contact the Library

Expert help for your enquiries and research.

E  library@icaew.com

T  +44 (0)20 7920 8620

Full-text standard

FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland
As issued by the Financial Reporting Council (FRC) in September 2015. This updated edition incorporates amendments issued in September 2014, February 2015, March 2015 and July 2015. Consolidated financial statements are covered in Section 9 and related party disclosures are covered in Section 33.

More information and links to previous versions and amendments are available on our main FRS 102 page.

Model accounts

Model accounts and disclosure checklists for new UK GAAP
The ICAEW Library can provide model accounts and disclosure checklists for FRS 101, FRS 102, FRS 102 Section 1A, FRS 103 and FRS 105. The examples and checklists cover a broad range of entities, including small companies, charities, groups, LLPs and micro-companies.

ICAEW guidance and support

The new UK GAAP
ICAEW's financial reporting portal offering practical resources on the new regime, including guidance factsheets and FAQs covering key topics.

Ask ICAEW Technical Advisory Service

Get an opinion from the experts. Our experienced technical advisors can help you with your new UK GAAP questions and offer practical advice. Call the advisory helpline on +44 (0)1908 248 250.

Questions we've dealt with recently include:

  • Can I do merger accounting under FRS 102?
  • When do I have to apply FRS 102 to my UK company client?
  • How does FRS 102 impact charities?

Find out more about the Technical and ethics advisory helpline, including our opening hours.

Financial Reporting Faculty

Financial Reporting Faculty
The faculty offers assistance and support in IFRS, UK GAAP and other aspects of business reporting. It offers technical briefings and factsheets, IFRS and UK GAAP standards-trackers, plus practical advice from industry experts and working accountants.


The Library provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Interpretation and application of UK GAAP for accounting periods commencing on or after 1 January 2015
Steve Collings (2015)
A detailed, practical guide to applying UK GAAP with specific sections and examples covering:

  • Summary of the key differences between FRS 102 and ‘old’ UK GAAP: Consolidated financial statements
  • Consolidated and separate financial statements
  • Consolidated and separate financial statements: Disposal of a subsidiary
  • Related parties
  • Transactions with related parties: Disclosure of parent–subsidiary relationships.

UK GAAP financial statement disclosures manual
Steve Collings (2016)
A practical manual for preparing new UK GAAP-compliant disclosures. This guide collects all of the latest guidelines into one place and is designed for practical application with many real-world examples. The chapter on financial investments covers:

  • investments in subsidiaries
  • disclosure requirements: parents and subsidiaries.


Some guides and comparisons that we link to may pre-date the latest amendments to this standard. While these resources contain useful information, please treat them with appropriate caution.

Staff Education Note 15: Acquisitions and disposals of subsidiaries
Guidance note produced by the FRC comparing the accounting treatment for the acquisition and disposal of subsidiaries under FRS 2, FRS 6, FRS 10 and FRS 102.

Staff Education Note 16: Financing transactions
Guidance note produced by the FRC comparing key accounting requirements for financing transactions under FRS 102, FRS 4 and FRS 5.

Online articles

The Library provides access to leading business, finance and management journals. These journals are available to logged-in ICAEW members, ACA students and other entitled users subject to suppliers' terms of use.

Articles are available to logged-in ICAEW members, ACA students and other entitled users.

Articles from other sources

FRC proposes amendments to FRS 102 for Gift Aid payments
CCH Daily, September 2017
The FRC is set to amend the rules for handling Gift Aid payments under FRS 102 in an effort to clarify when profits from a non-charitable subsidiary can be distributed to the parent charity. This article explains the key changes proposed in FRED 68. Available online to Accountancy Daily subscribers or in print from the Library.

FRS 102: Accounting for subsidiaries and groups - tips and pitfalls
CCH Daily, November 2015
Accounting for groups and subsidiaries under the FRS 102 accounting framework is complicated and varies from accepted practice under the old UK GAAP rules. This article examines the potential pitfalls, sets out recommended accounting treatment and provides practical examples of application of the new rules under new UK GAAP. Available online to Accountancy Daily subscribers or in print from the Library.

FRS 101 reduced disclosure is frontrunner for accounting for groups
CCH Daily, November 2015
This article explains how, under new UK GAAP, FRS 101 reduced disclosure is a draw for complex group structures striking a good balance by reducing the length of accounts and having tangible cost benefits. Available online to Accountancy Daily subscribers or in print from the Library.

FRS 102 case study 5: Reporting for international subsidiaries
CCH Daily, July 2015
Part five in a series on new accounting treatments under FRS 102, this article considers the reporting options for subsidiaries of overseas listed companies, which framework to choose and potential pitfalls. Available online to Accountancy Daily subscribers or in print from the Library.

FRS 102 case study 4: Group structures and subsidiaries
CCH Daily, May 2015
Part four in a series of case studies, this article assesses the impact of new UK GAAP accounting rules on group structures and subsidiaries, focusing on a large manufacturing group with disparate divisions and acquisition plans with worked examples. Available online to Accountancy Daily subscribers or in print from the Library.

FRS 102: Intra-group loans
AccountingWEB, April 2015
Detailed article from Steve Collings, with examples, explaining how intra-group loans are treated under FRS 102. Topics include allocating interest, loans from subsidiary to parents and loans between subsidiaries.

FRS 102: Part 1 - Intercompany loans
CCH Daily, July 2013
First in a series of articles exploring areas where FRS 102 differs significantly from current UK GAAP. This article considers the accounting treatment for loans between a parent and its subsidiaries or between subsidiaries, covering the requirements, mechanics, difficulties, exemptions and alternatives available. Available online to Accountancy Daily subscribers or in print from the Library.

Articles and books in the Library collection

To find out how you can borrow books from the Library please see our guide to book loans. You can obtain copies of articles or extracts of books and reports by post, fax or email through our document supply service.

Can't find what you are looking for?

If you're having trouble finding the information you need, ask the Library & Information Service. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com.

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