FRC proposes first annual update to the Reduced Disclosure Framework
17 December 2013
The Financial Reporting Council (FRC) has today issued for consultation proposals to update its UK GAAP standard on the Reduced Disclosure Framework (FRS 101)
FRS 101, which was published in November 2012, reduced the reporting burden for groups reporting under IFRS by allowing their subsidiaries to use the same accounting standards as in the group accounts but with fewer disclosures.
Today’s announcement is in line with the FRC’s commitment to update the standard at regular intervals to ensure that the reduced disclosure framework maintains consistency with IFRS and so is cost-effective for groups. The FRC intends to review FRS 101 on an annual basis.
The FRC proposes to simplify, in the reduced disclosure framework, the new disclosure requirements of IAS 36 Impairment of Assets
and clarify how those applying FRS 101 can adopt the new international accounting practice for investment entities (set out in IFRS 10 Investment Entities
and its consequential amendments to IAS 27 Separate Financial Statements)
, whilst still complying with legal requirements.
Roger Marshall, FRC Board member and Chair of the Accounting Council said:
“It has been a year since the publication of FRS 101 and a number of important developments have occurred in IFRS. The FRC is committed to provide succinct financial reporting standards that promote efficiency within groups and are cost effective to apply. Therefore we have carried out this first update now so that FRS 101 continues to be a cost effective option for UK groups.”
The FRC invites comments on these proposals. The comment period closes on 21 March 2014.
Notes to editors:
The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.