Revised proposals published for a new reporting framework in United Kingdom
The United Kingdom Accounting Standards Board (ASB) has published three Financial Reporting Exposure Drafts (FREDs) setting out revised proposals for the future of financial reporting in the UK and Republic of Ireland.
The three exposure drafts are:
- FRED 46 Application of Financial Reporting Requirements (draft FRS 100)
- FRED 47 Reduced Disclosure Framework (draft FRS 101)
- FRED 48 The Financial Reporting Standard applicable in the UK and Republic of Ireland (draft FRS 102).
The reporting framework proposed by the FREDs would operate as follows:
- entities required by law to apply EU-adopted IFRS must do so – previous proposals to require entities with 'public accountability' to apply EU-adopted IFRS in full have been discontinued
- certain qualifying entities (mainly subsidiaries and ultimate parents) may apply the EU-adopted IFRS with reduced disclosures as set out in FRED 47 – these entities would apply the recognition and measurement requirements of EU-adopted IFRS in full but benefit from lower disclosure requirements
- all other entities apply the draft standard set out in FRED 48 – these requirements would be based on the IFRS for SMEs but include modifications so that it fits better with the financial reporting requirements in the UK and Republic of Ireland, e.g. where an accounting treatment is permitted currently
- retaining the financial reporting standard for smaller entities (FRSSE) – the ASB will consult further once the European Commission's proposals to change the financial reporting requirements for small and micro-sized entities are clarified.
Comment on the FREDs close on 30 April 2012. Click for:
- ASB press release (link to ASB website)
- Our previous story on the ASB's original proposals (October 2010)
- Our previous story on the ASB's redeliberations on the proposals (June 2011)