Applicable to small companies or small groups as defined in Companies legislation or entities that would have qualified as such if they had been incorporated with the exception of building societies.
Issued December 2001. FRSSE (2008) is effective from 6 April 2008. FRSSE (2015) is effective from 1 January 2015 with earlier application permitted.
The FRSSE is withdrawn from 1 January 2016, when it is replaced by Section 1A of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland or FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime.
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The FRSSE prescribes the basis for preparing and presenting their financial statements. The definitions and accounting treatments are consistent with the requirements of companies legislation and are the same as those required by other accounting standards or are a simplified version of those requirements. The disclosure requirements exclude a number of those stipulated in other accounting standards.
Reporting entities that apply the FRSSE are exempt from complying with other accounting standards and UITF Abstracts unless preparing consolidated financial statements when certain other accounting standards apply.
For the convenience of companies using the FRSSE the requirements of company law on full financial statements are included in the standard.
The 2013 revisions to the FRSSE are in respect of the revised reporting framework effective in the UK from January 2015.
FRS 100 was issued in November 2012. The standard establishes rules on how to select the appropriate accounting framework for a particular entity. This may be FRS 101, FRS 102 or the FRSSE. FRS 100 modifies the FRSSE to reflect the new regime and the requirements of FRS 102. In particular amendments are made to:
Further minor amendments update references to accounting standards that will be withdrawn when the new regime takes effect.
Both the FRSSE (effective 2008) and the FRSSE (effective 2015) were amended in 2014 as a result of The Small Companies (Micro-Entities’ Accounts) Regulations 2013, to enable micro-entities to comply with the FRSSE whilst taking advantage of the exemptions available to micro-entities.
Micro-entities are defined by the Companies Act as companies that do not exceed two or more of the following thresholds (together with further criteria):
|Balance sheet total||£316,000|
|No of employees||10|
Certain new paragraphs have been added to both FRSSEs that are relevant only to micro-entities. These:
The amendments to the FRSSEs are effective from the same date as the underlying legislation, being financial years ending on or after 30 September 2013 for companies filing their accounts on or after 1 December 2013.
Following on from the withdrawal of the FRSSE the FRC have issued FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime.
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The FRSSE is withdrawn from 1 January 2016 and replaced by either:
In order to determine the accounting standard applicable to an entity previously within the scope of the FRSSE, detailed eligibility criteria must be referred to as laid out in sections 382 – 384B of the Companies Act 2006. Size thresholds given within this guidance are as follows:
|Micro entity||Small entity|
|Balance sheet total||£316,000||£5,100,000|
|No of employees||10||50|
FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime is based on FRS 102, but adapted to reflect the simpler nature and smaller size of micro-entities and the legal requirements applying to them.
FRS 102 The Financial Reporting Standard was revised in 2015 to include Section 1A relevant to small entities.
This sets out revised presentation and disclosure requirements for financial reporting by small entities; these entities must apply the recognition and measurement requirements of FRS 102.
This page was last updated 5 October 2015