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FRS 105 The Financial Reporting Standard applicable to the Micro-Entities Regime

Triennial review

The triennial review amendments to UK GAAP are effective for accounting periods beginning on or after 1 January 2019. Although many of the amendments aim to clarify rather than change accounting treatments, there are significant changes to some areas.

You can find more information on our Triennial review page.

Which version of the standard?

Guidance on the effective version of FRS 105 for different annual periods along with notes on amendments and early adoption are available exclusively to Financial Reporting Faculty members – log in or find out how to join the faculty.

For annual periods from 1 January 2019

For annual periods before 1 January 2019

See the FRC's website for a full list of standards in issue and earlier publications, including previous versions of FRS 105, amendments and guidance.

Who is eligible?

Our FRS 105 summary and timeline tells you who may apply the standard – alongside a synopsis, any current proposals and a timeline of FRC updates relating to the standard.

ICAEW guides and support

Helpsheets and factsheets

Is a company micro? πŸ”’
Technical Advisory Service, August 2018
Technical helpsheet to help members understand when a company qualifies as a micro entity under the Companies Act 2006.

Small and micro company size calculator πŸ”’
Technical Advisory Service, August 2018
Technical helpsheet to assist ICAEW members in determining whether a company meets the small or micro entity thresholds under the Companies Act 2006.

FRS 105 Update: Micro-entities’ Accounts FAQs πŸ”’
Financial Reporting Faculty, February 2018
This FRS 105 Update looks at the micro-entities regime and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime.

Micro entities filing options – FAQ πŸ”’
Financial Reporting Faculty, December 2017
This document answers frequently asked questions about the filing options for micro-entities.

Micro-entity accounts: Moving to FRS 105 πŸ”’
Financial Reporting Faculty, May 2017
This factsheet is designed to provide an overview of FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime. It also covers the criteria for qualifying as a micro-entity and the exemptions available to such entities.

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.

2019 UK GAAP Accounts πŸ”’
Financial Reporting Faculty, June 2019

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

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

Articles and features

Mini Entities, Major Problems
Audit & Beyond, August/July 2017
Some audit firms are receiving requests to audit micro-entity accounts. Audit & Beyond explores some of the associated challenges.

Webinars

Bitesize briefing - FRS 105 Micro-entities - answering your questions
Financial Reporting Faculty, 09 September 2019
Find answers to the most commonly asked questions on micro-entity accounts in this 20-minute webcast.

The UK's new small companies regime: choices and challenges
Financial Reporting Faculty, 27 October 2016
This webinar will consider recent changes to company law applicable to small and micro-entities, the new financial reporting regime for such entities and key factors to bear in mind when reviewing options under the new regime.

 


eBooks

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

Financial Statements for Micro-Entities πŸ”’
Steve Collings, UK GAAP financial statement disclosures (2016)
A practical manual for preparing new UK GAAP-compliant disclosures. This chapter covers the key features of FRS 105, filing requirements for a micro-entity, the differences between FRS 105 and previous UK GAAP, disclosure requirements, and illustrative financial statements for a micro-entity.

The Income Statement/Statement of Comprehensive Income: Micro-entities πŸ”’
Steve Collings, UK GAAP financial statement disclosures (2016)
A practical manual for preparing new UK GAAP-compliant disclosures. This section presents a structure for the Format 2 profit and loss account for a micro-entity.

Statement of Financial Position (Balance Sheet): Micro-entities πŸ”’
Steve Collings, UK GAAP financial statement disclosures (2016)
A practical manual for preparing new UK GAAP-compliant disclosures. This section presents example Format 1 and Format 2 balance sheet templates.

Accounting Policies, Estimates and Errors: Accounting Policies for a Micro-Entity πŸ”’
Steve Collings, UK GAAP financial statement disclosures (2016)
A practical manual for preparing new UK GAAP-compliant disclosures. This section explains exemptions for micro-entities regarding immaterial transactions, and the disclosure requirements for transactions, events or conditions not dealt with in FRS 105.

Fixed Assets and Investment Property: Fixed Assets Disclosures for Micro-Entities πŸ”’
Steve Collings, UK GAAP financial statement disclosures (2016)
A practical manual for preparing new UK GAAP-compliant disclosures. This section highlights the requirements for micro-entities regarding property, plant, equipment, and investment property.

Financial Instruments: Micro-entities πŸ”’
Steve Collings, UK GAAP financial statement disclosures (2016)
A practical manual for preparing new UK GAAP-compliant disclosures. This section explains the requirements for micro-entities relating to financial instruments and financial assets given as a security.

Leasing: Micro-entity issues πŸ”’
Steve Collings, UK GAAP financial statement disclosures (2016)
A practical manual for preparing new UK GAAP-compliant disclosures. This section highlights the requirements for micro-entities that enter into operating leases, or into sale and leaseback transactions.

Filing Financial Statements with Companies House: Micro-Entities' Filing Requirements πŸ”’
Steve Collings, UK GAAP financial statement disclosures (2016)
A practical manual for preparing new UK GAAP-compliant disclosures. This section explains the qualifying criteria for micro-entities, lists what micro-entity accounts should contain, and highlights the filing requirements for Companies House purposes. It also presents statements required on the balance sheet.

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.

From the FRC

FRS 105 table summary and Section 1A
A table produced by the FRC showing which of its Staff Education Notes (SENs) covering FRS 102 may be relevant for small entities applying FRS 102 Section 1A and micro-entities applying FRS 105. Published in October 2015.

Staff Education Notes (SENs)
A series of guidance notes for users of FRS 102 that illustrate some of the requirements of the standard, including analysis of differences between old UK GAAP and new UK GAAP.

From other sources

Micro-entities: FRS 105 or FRS 102?
AccountingWEB, January 2018
This article summarises some of the main points accountants should consider when choosing whether FRS 105 or 102 is suitable for the micro-entity clients. It discusses accounting policy choices, fair value and revaluation amounts, disclosure notes, deferred tax, off-rate loans, financial statement formats, as well as a number of other factors.

FRS 105: Micro-entities and tax
AccountingWEB, August 2017
Detailed article discussing HMRC's FRS 105 overview paper on tax implications. The article highlights notable differences between FRSSE and FRS 105, covering transition to FRS 105, treatment of errors, financial instruments, investment property, tangible fixed assets, PPE, goodwill, leases and holiday pay.


Further reading

Manuals and handbooks

The ICAEW Library stocks the latest UK GAAP handbooks and manuals. You can browse all our books on FRS 105 and micro-entities 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

Small company financial reporting
Steve Collings, Bloomsbury Professional, 2019
Detailed practical guide covering the small companies' financial reporting framework and micro-entities legislation in the UK. This edition has been updated to incorporate changes arising from the FRC's triennial review in December 2017.

Manual of accounting: UK GAAP
PwC, Lexis Nexis, 2019
Practical guide with worked examples explaining the requirements of FRS 100, FRS 101, FRS 102, FRS 103, FRS 104 and FRS 105. This edition has been updated for changes from the triennial review issued in December 2017.

Accounting considerations for small businesses (Accountants Digest no.637)
Anne Cowley, Croner-i, 2018
This digest highlights key technical considerations and practical challenges for small businesses when preparing accounts under FRS 102 and FRS 105.

Preparing small and micro company accounts 2018-19
Anne Cowley, Croner-i, 2018
Detailed guide explaining FRS 102 for small entities and FRS 105 for micro-entities covering dormant companies, small groups, audit exemptions, audit and assurance reports, filing the company accounts, and small and micro accounts in the Republic of Ireland.

Applying GAAP: A practical guide to financial reporting 2018-19
Anne Cowley, Wolters Kluwer, 2018
The latest edition of this detailed guide explains how to apply FRS 102 and FRS 105 with worked examples, disclosure suggestions and practical tips on implementing the standards.

Transition guide: FRS 102 and FRS 105 2017-18
Anne Cowley and Paul Davies, Wolters Kluwer, 2017
An all-in-one guide to the practical steps needed to transition from old UK GAAP to FRS 102 or FRS 105, with checklists and examples. 

Preparing FRS 105 accounts for micro-entities
James Lole, Wolters Kluwer, 2015
This manual gives practical guidance on applying FRS 105, including filing requirements, potential pitfalls of voluntary audit, comprehensive guidance on the criteria to be treated as a micro-entity, and differences between FRSSE and FRS 105.

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 105 and micro-entities 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

To micro or not to micro
Anne Cowley, Accountancy, January 2017
The first in a series of articles on small company accounts, considering the pros and cons of using the FRS 105 regime for micros.

New UK GAAP: FRS 105 – the advantages for qualifying micro-entities
Malcolm Pengelly, Tax Insight, July 2016
Fourth in a series of articles taking an in-depth look at the tax implications of new UK GAAP for smaller companies. This article looks at the advantages offered to qualifying 'very small' companies, LLPs and partnerships that opt to use the micro-entities reporting regime and prepare accounts under the new FRS 105 accounting standard.

Find out more about how you can borrow books from the ICAEW Library or get articles and documents sent to you by email, post or fax.


Ask ICAEW Technical Advisory Service

Get an opinion from the experts. Our experienced technical advisors can help you with your UK GAAP questions and offer practical advice. Call the advisory helpline on +44 (0)1908 248 250.

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