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FRED 53: ‘Draft amendments to FRS 101 'Reduced Disclosure Framework' (2013/14)

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 IFRS and remains cost-effective for groups.  The amendments represent the first of these annual updates. 

 

Project milestones

An exposure draft of the 2013/14 amendments (FRED 53) was published in December 2013 wit a comment period until 21 March 2014.

In July 2014, the FRC published amendments to Financial Reporting Standard (FRS) 101 ‘Reduced Disclosure Framework’ available to UK subsidiary companies that wish to apply the recognition and measurement requirements of IFRSs in their financial statements.

The amendments to FRS 101 and its appendices:

  • simplify the new disclosure requirements of IAS 36 Impairment of Assets in relation to fair value measurements used in impairment reviews; and
  • clarify how entities applying FRS 101 can adopt the new international accounting practice for investment entities (set out in IFRS 10 Investment Entities and its consequential amendments to IAS 27 Separate Financial Statements), whilst still complying with legal requirements.

A number of editorial amendments have also been made to clarify the legal requirements applicable to companies applying FRS 101 that hold financial instruments at fair value subject to paragraph 36(4) of Schedule 1 to the Regulations.

 

Current status of the project

Amendments to FRS 101 Reduced Disclosure Framework (2013/14 cycle) was published by the FRC in July 2014.  The amendments have the same effective date as the existing standard i.e. periods commencing on or after 1 January 2015. 

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.