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Need to know — FRS 101 amendment on IFRS 15 disclosure exemptions & proposal on notifying shareholders

Published on: 09 Aug 2016

The Financial Reporting Council (FRC) has made limited amendments to FRS 101 Reduced Disclosure Framework

The amendments provide certain disclosure exemptions in relation to IFRS 15 Revenue from Contracts with Customers. The FRC’s approach is based on its belief that users of a qualifying entity’s financial statements are likely to be more focused on information about liquidity and solvency than on information supporting the income statement. These exemptions are available from when IFRS 15 is applied. 

The amendments also clarify a legal requirement relating to the order in which the notes to the financial statements are presented. This change in company law is effective from 1 January 2016 (or 1 January 2015 if the legal changes are applied early). 

The FRC has also issued Financial Reporting Exposure Draft (FRED) 65 that proposes further amendments to FRS 101 to remove the requirement for a qualifying entity to notify its shareholders in writing that it intends to take advantage of the disclosure exemptions. A similar consequential amendment is proposed for FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The proposed effective date for these amendments is for accounting periods beginning on or after 1 January 2016.

Comments on FRED 65 are invited by 14 October 2016.

The press release, amendments to FRS 101 and FRED 65 are available on the FRC website.

Note that there is not a pdf version available for download on this short item.

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