CFM22020 - Accounting for corporate finance: Old UK GAAP excluding FRS 26 lenders: accounting standards

»Ê¹ÚÌåÓýapp following guidance covers Old UK GAAP (applied before 2015) where FRS 26 was not applied.

Overview of accounting guidance

»Ê¹ÚÌåÓýappre is no single accounting standard that lenders will follow when accounting for loans and other debt instruments.

»Ê¹ÚÌåÓýapp principal Accounting Standards which were likely to be relevant to determining the accounting for loan relationships were:

  • FRS 4 ‘Capital Instrumentsâ€�
  • FRS 5 ‘Reporting the substance of transactionsâ€�
  • FRS 18 ‘Accounting policiesâ€�

With effect for accounting periods beginning on or after 1 January 2005, a number (but not all) of the requirements set out in FRS 4 were replaced by FRS 25 ‘Financial Instruments: Presentation�. However, these changes had limited impact on the lender.