FRC consults on amendments to FRS101
15 December 2014
The Financial Reporting Council (FRC) has today issued proposals to make financial reporting for entities within groups more streamlined and efficient. In its consultation the FRC proposes a small number of modest additional disclosure exemptions to FRS 101 which have arisen in the last year.
Melanie Mclaren , Executive Director Codes and Standards at the FRC said:
“FRS 101 provides a cost-effective method for groups to apply accounting policies to the individual financial statements of entities across the group, consistent with those of the consolidated financial statements. The 2014/15 review of FRS 101 reflects careful consideration of a number of important developments in IFRS that have occurred during the last 12 months.”
Today’s announcement is in line with the FRC’s commitment to update FRS 101 annually to ensure that the reduced disclosure framework remains consistent with IFRS.
Read FRED 57: Draft amendments to FRS 101 Reduced Disclosure Framework (2014/15 Cycle)
The comment period closes on 20 March 2015.
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.
The FRC proposes to extend the disclosure exemptions from the requirements of IFRS 1 First-time Adoption of International Financial Reporting Standards to present an opening statement of financial position on first time adoption of IFRS, and to reflect changes in the definition of related parties (in IAS 24 Related Party Disclosures) which now includes entities that provide key management personnel services to the reporting entity. The FRC does not propose to make any amendments to FRS 101 in relation to IFRS 15 Revenue and IFRS 9 Financial Instruments.