News January 2019 FRC proposes amendments to FRS 101 and FRS 102

FRC proposes amendments to FRS 101 and FRS 102

29 January 2019
Today the FRC issued FRED 70 Draft amendments to FRS 101 – 2018/19 cycle and FRED 71 Draft amendments to FRS 102 – Multi-employer defined benefit plans.

FRED 70 arises from the annual review of FRS 101 Reduced Disclosure Framework. FRS 101 requires the application of the recognition and measurement requirements of EU-adopted IFRS with reduced disclosures.  Unlike accounts that apply IFRS in full, those prepared in accordance with FRS 101 must comply with detailed accounting requirements set out in company law.  Some of these requirements conflict with the requirements of IFRS 17 Insurance Contracts.  Consequently, FRED 70 proposes that insurance entities shall not be permitted to apply FRS 101 if IFRS 17 Insurance Contracts is part of EU‑adopted IFRS.  The comment period for FRED 70 closes on 30 April 2019.

FRED 71 responds to a current financial reporting issue by proposing new requirements in FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for presenting the impact of transition from defined contribution accounting to defined benefit accounting.  Such a transition is required by FRS 102 when sufficient information becomes available for an employer participating in a multi-employer defined benefit plan to apply defined benefit accounting.  The comment period for FRED 71 closes on 31 March 2019.