FRS 101 Reduced Disclosure Framework sets out disclosure exemptions available to UK qualifying subsidiaries and parent companies which otherwise apply the recognition, measurement and disclosure requirements of EU-adopted IFRS.
Published: November 2012. Effective for accounting periods beginning on or after 1 January 2015 with early application permitted.
FRS 101 allows qualifying entities to adopt the recognition and measurement requirements of EU-adopted IFRS, with:
Accounts prepared under FRS 101 are Companies Act accounts rather than IFRS accounts, and must therefore comply with the Companies Act 2006. In order to achieve compliance, certain amendments are made to EU-adopted IFRS.
The Application Guidance to FRS 101 sets out the amendments to EU-adopted IFRSs that are necessary to achieve compliance with the Companies Act 2006 and related regulations. The application guidance forms an integral part of FRS 101.
The following IFRSs are amended for FRS 101 adopters:
+ Only available when the consolidated financial statements of the parent undertaking make equivalent disclosure. FRS 100 provides detail on the interpretation of equivalent.
* Financial institutions (as defined by FRS 100) cannot take advantage of these disclosure exemptions other than to the extent that IFRS 13 disclosures relate to assets and liabilities other than financial instruments. Non-financial institutions may generally take advantage of these exemptions. However, additional disclosures are required if they hold certain financial instruments at fair value.
FRS 101 may be applied to the individual financial statements of a qualifying entity that are intended to give a true and fair view.
A qualifying entity is a member of a group where the parent of that group prepares publicly available consolidated financial statements which are intended to give a true and fair view and that member is included in the consolidation.
A qualifying entity that is required to prepare consolidated financial statements, or which voluntarily choses to do so, may not apply FRS 101 in its consolidated financial statements.
A charity may not be a qualifying entity.
Criteria (a) is removed for accounting periods beginning on or after 1 January 2016 (see recent amendments below).
FRS 101 Reduced Disclosure Framework (September 2015) in conjunction with the July 2016 Amendments to FRS 101, Amendments to FRS 101 and FRS 102 – Notification of shareholders, and July 2017 Amendments to FRS 101
FRS 101 Reduced Disclosure Framework (August 2014) in conjunction with paragraphs 5, 7A and 8(j) as amended in the July 2015 Amendments to FRS 101.
The amendments arising from the 2014/2015 accounting cycle are effective for accounting periods beginning on or after 1 January 2015, with early application permitted. The amendments arising for consistency with company law are applicable for accounting periods beginning on or after 1 January 2016. Early application is permitted but a company must apply the amendments together with The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (SI 2015/980).
The amendments arising from the 2015/2016 accounting cycle are effective from when a qualifying entity applies IFRS 15 (mandatory application date 1 January 2018) and continues to ensure that the reduced disclosure framework maintains consistency with EU-adopted IFRSs. These amendments principally provide certain disclosure exemptions in relation to IFRS 15 Revenue from Contracts with Customers and clarify a legal requirement relating to the order in which the notes to the financial statements are presented.
Effective for accounting periods beginning on or after 1 January 2016.
The amendment removes the requirement for a qualifying entity to notify its shareholders about the proposed use of disclosure exemptions.
The amendments arising from the 2016/2017 accounting cycle are effective from when a qualifying entity applies IFRS 16 (mandatory application date 1 January 2019) and continues to ensure that the reduced disclosure framework maintains consistency with EU-adopted IFRSs. The amendments provide some limited exemptions from some of the disclosure requirements of IFRS 16, in particular with respect to the form such disclosures might take. However, much of the detailed disclosure will still be required, similar to the current position under IAS 17. The 2016/17 cycle amendments also clarify that recognition in other comprehensive income of fair value gains and losses attributable to changes in own credit risk, as required by IFRS 9, will usually be a departure from CA 2006, requiring true and fair override disclosures to be given.
More information on the new financial reporting regime, including the full range of resources, is available on the new UK GAAP section of our website icaew.com/newukgaapThis page was last updated on 8 September 2017