A new financial reporting framework in the UK is effective for accounting periods beginning on or after 1 January 2015.
The UK's Financial Reporting Council (FRC) has published five standards which together form the basis of the new UK regime. The Financial Reporting Standard for Smaller Entities (FRSSE) has been withdrawn and small entities brought within the scope of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2016. For more information on the changes to small company reporting visit icaew.com/smallcompanyreporting
UK Reporting framework
FRS 100 Application of Financial Reporting Requirements sets out the new reporting regime.
FRS 100 Application of Financial Reporting Requirements sets out a new financial reporting regime for the UK entities effective from 1 January 2015. It explains which standards apply to which entity, when an entity can apply the reduced disclosure framework, and when an entity should follow a SORP.
The Financial Reporting Council (FRC) has issued amendments to UK accounting standards, ushering in a new financial reporting regime for small and micro entities. The changes will come into effect for accounting periods beginning on or after 1 January 2016. Early adoption is generally permitted.
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. It was published on 22 November 2012 alongside FRS 100 Application of Financial Reporting Requirements which sets out a new financial reporting regime for the UK entities effective 1 January 2015.
FRS 103 Insurance Contracts consolidates existing financial reporting requirements and guidance for insurance contracts. The requirements within it are based on IFRS 4 Insurance Contracts, the previous standard, FRS 27 Life Assurance and elements of the Association of British Insurers’ SORP.