FRED 57: Draft amendments to FRS 101 'Reduced Disclosure Framework' (2014/15)
Background
When it issued FRS 101 Reduced Disclosure Framework in November 2012, the Financial Reporting Council (FRC) committed to review the standard on an annual basis and update it to ensure that it maintains consistency with IFRSs and remains cost-effective for groups. The amendments represent the second of these annual updates, following the 2013/2014 amendments.
Project milestones
An exposure draft of the 2014/15 amendments (FRED 57) was published in December 2014 with a comment period until 20 March 2015.
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.
Current status of the project
Amendments to FRS 101 which incorporated these changes into the standard were published in July 2015.