The newsletter “Setting the Standard” covers the following key areas:  

• The FRC comment letter on the International Accounting Standard Board’s (IASB’s) Discussion Paper: (DP/2013/1) ‘A Review of the Conceptual Framework for Financial Reporting’.
• The Accounting Standards Advisory Forum meeting held on 5 – 6 December 2013 which discussed, among other things, stewardship and reliability based on the Conceptual Framework bulletins issued by the FRC in partnership with EFRAG and the National Standard Setters of France, Germany and Italy. 
• Recent reports issued by the Financial Reporting Lab. Specifically; Reporting of Audit Committees, Voluntary disclosures on debt and cash flows which investors find useful and Reporting of Directors’ remuneration.
• Forthcoming reports, expected in spring from the Financial Reporting Lab on accounting policies and the integration of the business review with the financial statements.  The Financial Reporting Lab is also concentrating on cutting clutter and electronic reporting.
• UK Accounting standards coming into force in 2015 – Financial Reporting Standard (FRS) 102 and other ‘new’ UK GAAP projects of the FRC.
• FRS 102 editorial amendments and clarification statements.
• FRS 102 staff education notes.
• Updates to Statements of Recommended Practice (SORPS) updated for the ‘new’ UK GAAP framework.
• FRC statements on reporting of exceptional items and companies classifying pension liabilities as equity. 

Updates are also provided on the following Financial Reporting Exposure Drafts (FREDs), published by the FRC:

• FRED 49: Draft FRS 103 Insurance Contracts;
• FRED 50: Draft FRC Abstract 1 – Residential Management Companies’ financial statements;
• FRED 51: Draft amendments to FRS 102 – Hedge Accounting;
• FRED 52: Draft amendments to the FRSSE – Micro-entities;
• FRED 53: Amendments to FRS 101. 

The newsletter also highlights that FRED 54 on the classification of financial instruments under FRS 102 is to be published by the FRC in February 2014.  An indication is also provided on a future Financial Reporting Standard for Smaller Entities (FRSSE) project which will entail a review of the FRSSE in light of the new EU Accounting Directive and to consider how the FRSSE is aligned with the new UK GAAP framework.  An exposure draft is expected in June 2014.  The FRC comment: 

the tentative view is that the FRSSE should be withdrawn and instead small entities and micro-entities brought within the scope of FRS 102, so that a consistent framework and principles apply to all entities.  

Consultations open for comment are also listed. 

Please click here for the full newsletter on the FRC website.