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

• The recently published guidance on the preparation of a Strategic Report ‘Guidance on the Strategic Report’ highlighting main areas of change from the original Exposure Draft.  The FRC highlight that “early indications from companies with 2013 year ends suggest that Strategic Reports are often longer than the business reviews that preceded them” and that they expect more companies to drive towards more clear and concise reporting in 2014.  The FRC indicate that this may be achieved “with a sharper focus on materiality and by considering the placement of information”.
• The FRC’s contribution to the International Accounting Standard Board’s (IASB’s) work to develop its Conceptual Framework for Financial Reporting.  The newsletter highlights that the FRC are “participating energetically” in the debates on prudence, accountability and the importance of reliability.
• The FRC’s response to the IASB’s request for information on the Post-Implementation Review of IFRS 3 'Business Combinations'.  The newsletter highlights that an outreach event in March with the Institute of Chartered Accountants in England and Wales (ICAEW) and also the FRC research paper ‘Investor views on intangible assets and their amortisation’ were both used to inform the FRC response.
• Key changes to the governance of the European Financial Reporting Advisory Group (EFRAG).
• Recent activity of the Financial Reporting Lab including ‘clear and concise’ case studies, two new projects (Disclosure of Dividend Policy and Capacity and Corporate Reporting in a Digital World) and a survey that seeks respondents’ views as to what should be the priorities of the Lab going forward and views on activities of the Lab to date.
• Updates on UK GAAP since the last edition of the newsletter - the issuance of Financial Reporting Exposure Draft (FRED) 54 ‘Draft Amendments to FRS 102 – Classification of debt instruments’, three editorial amendments to Financial Reporting Standard (FRS) 102, the issuance of FRS 103 ‘Insurance Contracts’, amendments made to the Financial Reporting Standard for Smaller Entities (FRSSE) – Micro Entities and a revised Policy and Code of Practice on Statements of Recommended Practice (SORPS).  The newsletter highlights that the amendments to FRS 102 (with FRED 51 and FRED 54) and FRS 101 (with FRED 53) will be issued in the summer.     
• The FRC consultation on drafts of three proposed new XBRL accounts taxonomies to support XBRL reporting under new UK GAAP and EU-adopted IFRS.  The FRC intends to target the release of the final taxonomies in September 2014 for implementation from 1 January 2015 to coincide with implementation of FRS 102.
• The FRC consultation proposing some changes to the operating procedures of the Conduct Committee.
• The FRC consultation on changes to the UK Corporate Governance Code.

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 changes to the small companies’ regime that are expected to take place when the new EU Accounting Directive is implemented.  The FRC comment:

As the legal changes to the small companies’ regime will be significant, retaining the FRSSE in its current form is not a realistic option, nor really is having accounting standards for small companies that are based on standards for larger companies that have been withdrawn. We have been giving more thought to how we will replace the FRSSE for small entities and micro-entities, as we develop a consultation document that will seek formal stakeholder feedback. We expect to issue this in the summer, alongside a consultation from the Department for Business, Innovation and Skills (BIS) which will discuss its proposals for implementing the Accounting Directive in the UK. 

As well as seeking stakeholders’ views on our outline plans for bringing small entities within the scope of FRS 102 (with reduced disclosures), we also expect to propose a new Financial Reporting Standard for Micro-entities (FRSME). This will be based on the new micro-entities regime, which has now been reflected in the FRSSE, and may include recognition and measurement simplifications that are appropriate to the very smallest entities. 

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