ICAEW publishes its response on proposed amendments to FRS 101
20 Mar, 2015
The Institute of Chartered Accountants in England and Wales (ICAEW) has published its comment letter to the Financial Reporting Council (FRC) on Financial Reporting Exposure Draft (FRED) 57 ‘Draft amendments to FRS 101 'Reduced Disclosure Framework' (2014/15)’.
The main changes proposed by the FRC are to allow exemptions from the disclosure requirements of:
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paragraph 18A of IAS 24 Related Party Disclosures, introduced by the Annual Improvements to IFRSs (2010–2012 Cycle), which requires an entity that obtains key management personnel services from a management entity to disclose amounts incurred for the provision of those services; and
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paragraphs 6 and 21 of IFRS 1 First-time Adoption of IFRSs, which require entities adopting IFRSs for the first time to prepare and present an opening statement of financial position at the date of transition.
The ICAEW support all of the FRC's proposals and think that the proposed exemption from the requirement to present an opening statement of financial position on transition to FRS 101 will be particularly helpful. Because the proposed amendments do not appear controversial and are likely to be very useful to entities applying FRS 101 for the first time, the ICAEW would prefer that the FRC finalise these amendments without delay, rather than waiting for the amendments arising from the implementation of the EU Accounting Directive.
The full comment letter can be obtained from the ICAEW website.