FRC makes limited amendments to FRS 101 and consults on further changes
11 Jul, 2016
The Financial Reporting Council (FRC) has made limited amendments to FRS 101 ‘Reduced Disclosure Framework’ and has issued Financial Reporting Exposure Draft (FRED) 65 that proposes further amendments to remove the requirement for a qualifying entity to notify its shareholders in writing that it intends to take advantage of the disclosure exemptions in FRS 101. A similar consequential amendment is proposed for FRS 102.
When FRS 101 was originally published, the FRC committed to review the standard on an annual basis and update it to ensure that it maintains consistency with IFRS and remains cost-effective for groups. The amendments to FRS 101, following FRED 63, arise as a result of the 2015/16 annual review of the standard.
The amendments provide certain disclosure exemptions in relation to IFRS 15 Revenue from Contracts with Customers and clarify a legal requirement relating to the order in which the notes to the financial statements are presented. Specifically there are disclosure exemptions from the second sentence of paragraph 110 and from paragraphs 113(a) to 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 for qualifying entities.
Comments on FRED 65 are invited until 14 October 2016.
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