FRS 101 summary and timeline

A summary of FRS 101 Reduced Disclosure Framework, including information on amendments to adopted IFRS, disclosure exemptions, who should apply the standard, current proposals and a timeline of past amendments, announcements, exposure drafts and consultations.

Summary

FRS 101 allows qualifying entities to adopt the recognition, measurement and disclosure requirements of adopted IFRS, with:

• certain amendments to the requirements of IFRS in order to comply with the Companies Act; and
• a reduction in the required level of disclosures.

Adopted IFRS are EU-adopted IFRS for annual periods beginning prior to 1 January 2021(unless amendments are adopted early); after this date they are UK-adopted international accounting standards for companies that apply UK company law and EU-adopted IFRS for companies that apply Irish company law.

Any qualifying entity taking advantage of the reduced disclosure framework must state in the notes to the financial statements that the financial statements were prepared in accordance with FRS 101. Note that as the full requirements of adopted IFRS are not complied with, the financial statements should not contain an unreserved statement of compliance with IFRS.

• Find out more about EU endorsement of IFRS
• Find out more about UK endorsement of IFRS

Amendments to adopted IFRS

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 adopted IFRS.

The Application Guidance to FRS 101 sets out the amendments to 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:

• IFRS 1 First-time Adoption of International Financial Reporting Standards
• IFRS 3 Business Combinations
• IRFS 4 Insurance Contracts
• IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
• IAS 1 Presentation of Financial Statements
• IAS 16 Property, Plant and Equipment
• IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets

Disclosure exemptions

Exemptions apply to certain disclosures in the following standards:

• IFRS 2 Share-based payment +
• IFRS 3 Business Combinations +
• IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
• IFRS 6 Exploration for and Evaluation of Mineral Resources
• IFRS 7 Financial Instruments: Disclosures +*
• IFRS 13 Fair Value Measurement +*
• IFRS 15 Revenue from Contracts with Customers
• IFRS 16 Leases
• IAS 1 Presentation of Financial Statements
• IAS 7 Statement of Cash Flows
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
• IAS 16 Property, Plant and Equipment
• IAS 24 Related Party Disclosures
• IAS 36 Impairment of Assets +
• IAS 38 Intangible Assets
• IAS 40 Investment Property
• IAS 41 Agriculture

+ Only available when the consolidated financial statements of the parent undertaking make equivalent disclosure. The Application Guidance to FRS 100 provides detail on the interpretation of equivalence and subsequent to the UK’s exit from the EU, this will be further updated and made available on the FRC’s website at www.frc.org.uk

* Financial institutions 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.

The entity must include in the notes to the financial statements:

• a brief narrative summary of the disclosure exemptions adopted; and
• the name of the parent undertaking and details of where the consolidated financial statements can be found.

Who should apply the standard?

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. 

Timeline

Date	Update
11 July 2023	FRC issues Amendments to FRS 102 and FRS 101 – International tax reform – Pillar Two model rules. The amendments introduce temporary exemptions and targeted disclosure requirements relating to the implementation of Pillar Two legislation.
19 May 2023	FRC concludes annual review of FRS 101 and issues Amendments to Basis for Conclusions FRS 101 Reduced Disclosure Framework – 2022/23 cycle. No amendments have been made to FRS 101 as a result of this review.
31 January 2022	January 2022 editions of accounting standards reflect amendments made since the previous editions were issued in 2018 as well as changes in Irish company law.
21 May 2021	FRC concludes annual review of FRS 101 and issues Amendments to FRS 101 – 2020/21 cycle. The amendments predominantly provide a disclosure exemption in relation to IAS 16  and maintain consistency with IAS 1.
21 December 2020	Amendments to accounting standards – UK exit from the EU Amendments to FRS 100, 101, 102, 103, 104 and 105 issued by the FRC to ensure consistency with UK company law and to update legal references and terminology used in the standards, reflecting changes in legislation as the EU exit transition period ends.
19 October 2020	Amendment to FRS 101 – Effective date of IFRS 17 New update from the FRC announcing publication of Amendment to FRS 101 – Effective date of IFRS 17, which changes the effective date of an amendment to the definition of a qualifying entity, effectively allowing relevant insurers to continue to apply FRS 101 for a further two years.  The revised effective date for the new definition of a qualifying entity is accounting periods beginning on or after 1 January 2023.
29 May 2020	Amendments to FRS 101 – 2019/20 Cycle News update issued by the FRC announcing the publication of Amendments to FRS 101 – 2019/20 cycle, which makes minor amendments to the disclosure exemptions relating to the statement of cash flows.
16 December 2019	Annual review of FRS 101 News update issued by the FRC on 16 December 2019 announcing publication of FRED 73 Draft amendments to FRS 101 – 2019/20 cycle. It proposes amendments to improve the consistency of the disclosure exemptions in relation to the statement of cash flows and related disclosures.
11 July 2019	FRC concludes 2018/19 review of FRS 101 and proposes limited amendments to FRS 102 News release issued by the FRC on 11 July 2019 announcing Amendments to FRS 101 – 2018/19 cycle, which amends the definition of a qualifying entity to ensure continued compliance with company law that applies to non-IAS accounts.
29 January 2019	FRC proposes amendments to FRS 101 and FRS 102 News release issued by the FRC on 29 January 2019 announcing FRED 70, arising from the annual review of FRS 101, and FRED 71, addressing multi-employer defined benefit plans.
10 May 2018	Publication of amendments to FRS 101 and feedback statement to FRED 69 News release issued by the FRC on 10 May 2018 announcing that the Basis for Conclusions has been updated to reflect that no amendments to FRS 101 have been made as a result of the 2017/18 review.
28 March 2018	March 2018 editions of accounting standards reflect triennial review amendments Press notice issued by the FRC on 28 March 2018 announcing the publication of new editions of all UK and Ireland accounting standards.
14 December 2017	Completion of Triennial Review News update issued on 14 December 2017 announcing the completion of the FRC's triennial review of FRS 102 along with the publication of amendments and clarifications to the standards.
30 October 2017	The FRC consults on annual review of FRS 101 Press release issued by the FRC on 30 October 2017 announcing the publication of ‘FRED 69 FRS 101 Reduced Disclosure Framework – 2017/18 cycle’, which proposes no amendments to the standard.
12 July 2017	FRC issues Amendments to FRS 101 – 2016/17 cycle Press notice issued by the FRC on 12 July 2017 announcing amendments relating to disclosure exemptions in relation to IFRS 16 Leases.
13 December 2016	FRC removes requirement to notify shareholders from FRS 101 and FRS 102 and consults on FRED 66 News update from the FRC released on 13 December 2016 announcing the publication of ‘Amendments to FRS 101 and FRS 102 - Notification of shareholders’.
8 July 2016	FRC concludes annual review of FRS 101 and proposes further changes in response to feedback Press notice issued by the FRC on 8 July 2016 announcing amendments to the standard and ‘FRED 65 Draft amendments to FRS 101 – Notification of shareholders’.
11 December 2015	FRC proposes limited amendments to FRS 101 and FRS 103 Press notice issued by the FRC on 11 December 2015 announcing proposed disclosure exemptions in relation to IFRS 15.
29 September 2015	FRC issues revised editions of FRS 100, FRS 101 and FRS 102 The September 2015 editions of the standards incorporate amendments that were issued in July 2015.
16 July 2015	New accounting standards offer simplification for micro-entities and small entities Press notice issued by the FRC on 16 July 2015 announcing amendments to FRS 100, 101 and 102 and the publication of a new accounting standard FRS 105. The changes also include the withdrawal of FRSSE.
15 December 2014	FRC consults on amendments to FRS101 Press notice issued by the FRC on 15 December 2014.
22 August 2014	FRC issues revised editions of FRS 101 and FRS 102 The August 2014 editions incorporate previously published amendments to FRS 102, FRS 102 and FRS 103.
23 July 2014	FRC issues amendments to FRS 101 and FRS 102 Press notice released by the FRC on 23 July 2014 announcing ‘Amendments to FRS 101: Reduced Disclosure Framework (2013/14 Cycle)’.
17 December 2013	FRC proposes first annual update to the Reduced Disclosure Framework Press notice issued by the FRC on 17 December 2013 announcing consultation proposals to update FRS 101.
22 November 2012	FRC announces new accounting standards for the UK and Republic of Ireland Press notice issued by the FRC on 22 November 2012.
30 January 2012	ASB issues revised proposals for the Future of Financial Reporting Standards in the UK & Republic of Ireland Press notice issued by the FRC on 30 January 2012 announcing revised FREDs following feedback to its previous exposure drafts.
29 October 2010	The Future of Financial Reporting in the UK and the Republic of Ireland Press notice issued by the FRC on 29 October 2010, announcing proposals for a three-tier reporting framework and a simplified UK standard based on the IFRS for SMEs.