Our Financial Reporting Expert Group contributed to our response to the the FRC's Consultation Paper FRED 61 – Draft Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland: Share-based payment transactions with cash alternatives.
We supported the proposed changes as we considered that these will help what exists now. We noted that we had previously raised concerns about the fact that the FRC is continuing to make changes to FRS 102 after the transition date for many entities and therefore recommended that the FRC undertakes a root cause analysis to identify the reasons why such late changes are required and consider how future consultations could be improved. We also suggested that the FRC identifies a model that is appropriate for use by companies that will be applying FRS 102 when there is no cash settlement alternative.
