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FRS 101 Reduced disclosure framework

FRS 101 sets out disclosure exemptions available to UK qualifying subsidiaries and parent companies that otherwise apply the recognition, measurement and disclosure requirements of EU-adopted IFRS.

Which version of the standard?

Annual period Effective version of the standard Notes on amendments and early adoption

Starts on or after 1 January 2019

FRS 101 Reduced Disclosure Framework
(March 2018)

Includes the consequential amendments to FRS 101 arising from the Amendments to FRS 102 – Triennial review 2017 as well all previous amendments to FRS 101 listed below.

Starts on or after 1 January 2018 – 31 December 2018

FRS 101 Reduced Disclosure Framework
(September 2015)

Amendments to FRS 101 – 2015/16 cycle
(July 2016)

Amendments to FRS 101 and FRS 102 – Notification of shareholders
(December 2016)

Amendments to FRS 101 – 2016/17 cycle
(July 2017)

Early adoption of FRS 101 (March 2018) is permitted.

Starts 1 January 2016 – 31 December 2017

FRS 101 Reduced Disclosure Framework
(September 2015)

Amendments to FRS 101 and FRS 102 – Notification of shareholders
(December 2016)

Amendments to FRS 101 – 2016/17 cycle
(July 2017)

Early adoption of FRS 101 (March 2018) is permitted.

Starts 1 January 2015 – 31 December 2015

FRS 101 Reduced Disclosure Framework
(August 2014)

Amendments to FRS 101 – 2014/15 cycle and other minor amendments
(July 2015)

Early adoption of FRS 101 (September 2015) is permitted but must be applied together with the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (SI 2015/980).

Recent amendments

1. Amendments to FRS 101 (2013/2014 cycle)
The amendment is effective from the effective date of FRS 101 - 1 January 2015. Early adoption is permitted to the extent that an entity can apply the amendments of the underlying IFRSs.

The first of the annual update cycles has resulted in amendments to simplify the new disclosure requirements of IAS 36 Impairment of Assets in relation to recoverable amount.

The amendment also clarifies how entities should adopt the IFRS 10 Consolidated Financial Statements and IAS 27 Separate Financial Statements guidance on investment entities whilst still complying with legal requirements. FRS 101 is not applicable to the preparation of consolidated financial statements however IAS 27 requires that if a parent that is an investment entity is required to measure an investment at FVTPL in accordance with IFRS 10, then the investment is accounted for in the same way in its individual financial statements. Therefore if an entity meets the IFRS 10 definition of an investment entity, FRS 101 requires that it measures investments in subsidiaries at FVTPL in its individual financial statements.
2. July 2015 Amendments to FRS 101 (2014/15 cycle and other minor amendments)

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).

  • Amendments to paragraphs 5, 7A and 8(j) arise from the 2014/2015 cycle amendments. These amendments add an exemption from the IFRS 1 requirement to present a statement of financial position at the date of transition and an exemption from the IAS 24 requirement to disclose amounts incurred for the provision of key management personnel services by a separate management entity.
  • Minor updates are made to the FRS 101 Application Guidance on amendments to IFRSs in order to maintain compliance with the Companies Act. These amendments relate to IFRS 3, IAS 1 and IAS 37.
3. July 2016 Amendments to FRS 101 - 2015/16 cycle

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.

4. Amendments to FRS 101 and FRS 102 – Notification of shareholders

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.

5. The July 2017 Amendments to FRS 101 - 2016/17 cycle

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.

Read amendments to FRS 101 (2016/17 cycle)

Read the amendments to the requirements of IFRS 16

6. Amendments to FRS 102 – Triennial Review 2017

The amendment is effective for accounting periods beginning on or after 1 January 2019, with early application permitted as long as all amendments are applied at the same time.

As a result of amendments made to FRS 102 in the 2017 Triennial Review, a number of amendments are made to FRS 101. Several of these are editorial in nature, and in addition:

  • It is clarified that when an entity applies the IFRS 1 exemption in respect of assets and liabilities of subsidiaries, associates and joint ventures it must ensure that those assets and liabilities are measured in compliance with company law.
  • Within the Glossary the definition of financial institution is amended and definitions of FRS 101, FRS 102, IAS Regulation and public benefit entity are deleted.

Who is eligible?

Our FRS 101 summary and timeline tells you who may apply the standard – alongside a synopsis, current proposals and a timeline of FRC updates.

ICAEW guidance and commentary

Helpsheets and factsheets

Reduced disclosure framework πŸ”’
Financial Reporting Faculty, August 2017
This factsheet is designed to assist those adopting FRS 101, which is available to certain entities under the UK financial reporting regime.

Introducing the reduced disclosure framework πŸ”’
Financial Reporting Faculty, May 2017
In this edition of a new series of views and commentary on FRS 101 Reduced Disclosure Framework, Financial Reporting Faculty staff answer some of your questions on the new standard.

Annual factsheets

These exclusive factsheets, produced annually by the Financial Reporting Faculty for its members, highlight all new and modified requirements for preparers of UK GAAP accounts. Each annual edition focuses primarily on new requirements with mandatory application for preparers with periods beginning on or after 1 January of that year.

2018 UK GAAP Accounts πŸ”’
Financial Reporting Faculty, June 2018

2017 UK GAAP Accounts πŸ”’
Financial Reporting Faculty, June 2017

2016 UK GAAP Accounts πŸ”’
Financial Reporting Faculty, August 2017

Webinars

FRS 101 The Reduced Disclosure Framework – Refresher πŸ”’
Financial Reporting Faculty, 16 July 2015
This webinar provides a refresher of FRS 101’s requirements, explaining not only which entities can benefit from applying the standard and what disclosure exemptions are available to them, but also considering new and emerging issues relating to the standard.


eBooks

Access to eBooks is only available to ICAEW members and ACA students – please log in to view these titles.

FRS 101 – Reduced disclosure framework πŸ”’
EY, UK GAAP 2017: Application of FRS 100–104 in the UK (2017)
Fully updated guide focusing on each area of the financial statement in detail with illustrative examples. This chapter covers the measurement and presentation differences between FRS 101 and EU-adopted IFRS, disclosure exemptions for qualifying entities, and additional Companies Act disclosures.

If you have any difficulties using these eBooks, please see our Help and support advice or contact library@icaew.com.


Example accounts

Model accounts and disclosure checklists for new UK GAAP
The ICAEW Library can provide model accounts and disclosure checklists for FRS 101, FRS 102, FRS 102 Section 1A, FRS 103 and FRS 105. The examples and checklists cover a broad range of entities, including small companies, charities, groups, LLPs and micro-companies.


External resources

Some guides and comparisons that we link to may pre-date the latest amendments to this standard. While these resources contain useful information, please treat them with appropriate caution.

FRS 101 overview paper: Tax implications
HMRC, December 2016
Paper giving an overview of key accounting changes and tax considerations for companies moving from UK GAAP to FRS 101.


Further reading

Manuals and handbooks

The ICAEW Library stocks the latest UK GAAP handbooks and manuals. You can browse all our books on FRS 101 and the reduced disclosure framework or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

GAAP 2018: UK reporting legal and regulatory framework (Volume A)
Deloitte, Croner-i, 2018
This manual deals with legal and regulatory requirements as at 1 September 2017 for UK entities, covering FRS 100 and FRS 101.

Manual of accounting: New UK GAAP
PwC, Lexis Nexis, 2017
Practical guide with worked examples explaining the requirements of FRS 100, FRS 101, FRS 102, FRS 103 and FRS 104.

Preparing FRS 101 accounts
Helen Lloyd, Wolters Kluwer, 2017
A guide for entities that choose to prepare accounts using the reduced disclosure framework. It discusses company accounts, FRS 101 and the law, FRS 101 for LLPs, and FRS 101 in the Republic of Ireland.

Articles

The ICAEW Library subscribes to over 160 current journals and magazines, as well as offering access to 1,800 key UK and international business, management and trade titles online. You can browse articles on FRS 101 and the reduced disclosure framework or request any of the selected articles below by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

Transition to FRS 101
Anne Cowley, Accountancy, February 2018
This article considers key steps to consider on transition to FRS 101, whether transitioning from FRS 102, FRS 105 or IFRS.

FRS 101 v FRS 102
Anne Cowley, Accountancy, January 2018
This article examines fundamental accounting differences between FRS 101 and FRS 102 on loans, leases and revenue recognition. Contains examples.

FRS 101 versus IFRS
Anne Cowley, Accountancy, December 2017
This article examines they key differences between FRS 101 accounts and recognition requirements in IFRS, with examples.

Disclosure exemptions
Anne Cowley, Accountancy, November 2017
The main reason for applying FRS 101 is to take advantage of the reduced disclosures compared to IFRS. This article looks at some of the disclosure exemptions in detail in order to understand how the exemptions are used in practice.

Why use FRS 101?
Anne Cowley, Accountancy, October 2017
FRS 101 is now well established in the UK as a way of applying the recognition and measurement principles of IFRS without needing to give many of the complex disclosures. This article looks at who can use FRS 101, why a qualifying entity might choose to apply it, as well as some of the challenging areas.

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