News July 2019 FRC concludes 2018/19 review of FRS 101 and proposes limited amendments to FRS 102

FRC concludes 2018/19 review of FRS 101 and proposes limited amendments to FRS 102

11 July 2019
The FRC has concluded its annual review of FRS 101 for 2018/19 and issued Amendments to FRS 101 – 2018/19 cycle, which amends the definition of a qualifying entity so that insurers cannot apply FRS 101 from the effective date of IFRS 17 Insurance Contracts.  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.  This amendment to FRS 101 was necessary to ensure continued compliance with company law that applies to non-IAS accounts.

In addition, the FRC has today issued FRED 72 Draft amendments to FRS 102 – Interest rate benchmark reform, to respond to a current financial reporting issue.  FRED 72 proposes amendments to specific hedge accounting requirements of FRS 102 to provide relief that will avoid unnecessary discontinuation of hedge accounting as interest rate benchmarks are being reformed.  FRED 72 is based on similar proposals issued by the IASB, and has a proposed effective date of 1 January 2020, with early application permitted.  Comments should be provided by 20 September 2019.
Standards referred to above:
  1. FRS 101 Reduced Disclosure Framework; and
  2. FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
  3. Impact Assessment and Feedback Statement Amendments to FRS 101 Reduced Disclosure Framework 2018/19 cycle

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William BoyackSenior Communications Manager