FRED 56: Draft FRS 104 Interim Financial Reporting


When the FRC was developing FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', it was decided that FRS 102 would not contain guidance on interim reporting and that instead the FRC would undertake a separate project to review the existing ASB Statement 'Half-yearly financial reports'.

In November 2014, the FRC published Financial Reporting Exposure Draft (FRED) 56.  FRED 56 proposed to withdraw the ASB Statement 'Half-yearly reports' and replace it with a new standard based on IAS 34 'Interim Financial Reporting', adapted for use by entities that apply FRS 102.  As well as withdrawing the ASB statement on half-yearly reporting, the FRC also proposed to withdraw the existing ASB Statement 'Preliminary announcements'. This statement was issued in 1998 and in the FRC's view it is now obsolete, given developments in the requirements and practice around preliminary announcements since then.

Project milestones

Financial Reporting Exposure Draft (FRED) 56 was published by the Financial Reporting Council (FRC) in November 2014.

In March 2015, the FRC published FRS 104 Interim Financial Reporting. 

FRS 104 is intended for use in the preparation of interim financial reports for those entities that apply FRS 102 but may also be used as a basis for preparing interim reports by those entities applying FRS 101 Reduced Disclosure Framework. As proposed, the Standard is based on IAS 34 Interim Financial Reporting, the international standard on interim reporting with certain adaptations and replaces the existing Accounting Standards Board (ASB) Statement Half-yearly financial reports, issued in 2007.

The new standard does not impose an obligation on entities to produce interim financial reports. However, entities that make a statement of compliance with it will be required to apply all of its provisions. The new standard will, for example, apply to those listed investment trusts which report under UK GAAP.

As well as withdrawing the ASB statement on half-yearly reporting, the FRC, as indicated in FRED 56, has also withdrawn the existing ASB Statement Preliminary announcements

Current status of the project

FRS 104 Interim Financial Reporting was published in March 2015 and is effective for interim periods commencing on or after 1 January 2015 with early application permitted.

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