FRED 59 — Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Small entities and other minor amendments
Background
In September 2014 the FRC consulted on the future of accounting standards for micro-entities, small entities and other amendments to accounting standards necessary as result of the UK implementation of the EU Accounting Directive (“the Directive”). This followed a consultation issued by the Department for Business, Innovation and Skills (BIS) on the implementation of the Directive, which sought to consolidate existing legislation on financial reporting and reduce the regulatory burden on smaller companies. Following the government response on the UK implementation of the Directive, the FRC issued three FREDs for public comment which propose changes to the existing UK financial reporting framework.
Project Milestones
FRED 59 - Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Small entities and other minor amendments sets out the revised presentation and disclosure requirements for financial reporting by small entities in a new section of FRS 102, Section 1A Small Entities. It is proposed that small entities will apply the recognition and measurement requirements of FRS 102 with different presentation and disclosure requirements and that this section, within FRS 102, will replace the existing Financial Reporting Standard for Smaller Entities (FRSSE). A number of other necessary amendments are proposed to maintain consistency between FRS 102 and company law.
The amendments if finalised, would be effective for accounting periods beginning on or after 1 January 2016, with earlier application permitted for periods beginning on or after 1 January 2015 to be consistent with changes in relevant legislation.
We have created separate project pages for FREDs 58 and 60.
Current status of the project
Amendments as a result of this project were incorporated into FRS 102 in July 2015.
