FRC consults on new UK and Irish interim reporting requirements
News types: Consultation Announcement
Published: 12 November 2014
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The Financial Reporting Council (FRC) has today issued an Exposure Draft, FRED 56 ‘Draft FRS 104 Interim Financial Reporting’, which would revise the FRC’s existing guidance on interim financial reports for consistency with new UK and Irish GAAP (FRS 102).
These proposals are relevant for entities that apply UK and Irish GAAP and prepare interim financial reports and aim to promote the publication of informative and understandable interim financial reports.
Roger Marshall, FRC Board Member and Chairman of the Accounting Council, said:
These proposals are relevant for entities that apply UK and Irish GAAP and prepare interim financial reports and aim to promote the publication of informative and understandable interim financial reports.
Roger Marshall, FRC Board Member and Chairman of the Accounting Council, said:
“The publication of reliable interim financial reporting improves the ability of investors, creditors or others to understand an entity’s capacity to generate earnings and cash flows and its financial position and liquidity.
Draft FRS 104 is based on IAS 34 ‘Interim Financial Reporting’.Using an IFRS-based solution is consistent with the approach adopted for developing new UK and Irish GAAP.” The FRC is also proposing to withdraw the Reporting Statement ‘Preliminary announcements’.
Comments on the proposals are invited by 12 January 2015. The FRC intends to finalise the new interim reporting requirements by the end of the first quarter of 2015.
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 Reporting Statement ‘Half-yearly financial reports’ was issued by the Accounting Standards Board (ASB) in 2007. The Reporting Statement ‘Preliminary announcements’ was issued by the ASB in 1998.
It is proposed that the revised interim reporting requirements come into effect for interim periods beginning on or after 1 January 2015. New UK and Irish GAAP includes FRS 101 Reduced Disclosure Framework ; FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ; and FRS 103 Insurance Contracts .