UK GAAP is the set of accounting rules most UK businesses follow. This guide explains what it is, who sets it, and how it relates to FRS 102, FRS 105 and IFRS.
Published July 2026 · Updated July 2026
UK GAAP is the body of accounting standards and conventions used to prepare financial statements in the UK. It is the rulebook that ensures a profit or asset figure means the same thing from one company to the next.
The Financial Reporting Council maintains UK accounting standards. The main standard is FRS 102, with a simplified FRS 105 for micro-entities.
UK GAAP is used by most UK private companies. Listed and many larger groups use IFRS instead, the international standards, so their accounts are comparable across borders. The concepts overlap heavily.
They are not legally bound by it in the way companies are, but the same principles make their accounts more reliable and useful.
Usually FRS 102, or FRS 105 if you qualify as a micro-entity. Size limits determine which.
Standards are periodically updated by the FRC. Your accountant or software keeps you aligned with the current version.
Source: Financial Reporting Council ↗. This glossary is written for small business owners, so definitions are simplified. Tax rates and thresholds reflect 2026/27 UK rules and change over time. Berified does not provide accounting, tax or legal advice; always check the source or a qualified adviser.