Background

FRED 73, issued in December 2019, arose from the annual review of FRS 101 Reduced Disclosure Framework and proposed two minor amendments to the standard to improve the consistency of the disclosure exemptions in relation to the statement of cash flows and related disclosures.

FRED 73 set out a proposed amendment to FRS 101 to provide an exemption from the disclosure of cash flows required by paragraph 24(b) of IFRS 6 Exploration for and Evaluation of Mineral Resources. A similar amendment was proposed to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for qualifying entities.

FRED 73 also set out a proposed amendment to the exemption from paragraph 33(c) of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, removing the condition that this exemption is only available when equivalent disclosures are made in the relevant consolidated financial statements of the group in which the entity is consolidated. This was for consistency with the exemption from the presentation of a statement of cash flows.

No other amendments were proposed in the FRED.

Status of the project

In May 2020, the FRC issued Amendments to FRS 101 Reduced Disclosure Framework - 2019/20 cycle.  Paragraph 8 of FRS 101 notes that the exemptions are available from when the relevant standard is applied. Therefore there is no need to amend the effective date for these amendments, which will be available for financial statements approved after the amendments have been finalised.