FRS 101
Overview
FRS 101 “Reduced Disclosure Framework” (link to FRC website) sets out the disclosure exemptions (a reduced disclosure framework) for the individual financial statements of subsidiaries, including intermediate parents, and ultimate parents that otherwise apply the recognition, measurement and disclosure requirements of adopted IFRS Standards.
History of FRS 101
| Date | Development | Comments |
|---|---|---|
| 23 November 2012 | FRS 101 issued | Effect for periods beginning on or after 1 January 2015. |
| 17 December 2013 | FRED 53: ‘Draft amendments to FRS 101 'Reduced Disclosure Framework' (2013/14) issued | Comment period ended 21 March 2014 |
| 23 July 2014 | Amendments to FRS 101 Reduced Disclosure Framework (2013/14 cycle) published | Effect for periods beginning on or after 1 January 2015 |
| 22 August 2014 | Revised version of FRS 101 issued | Effect for periods beginning on or after 1 January 2015 |
| 15 December 2014 | FRED 57: ‘Draft amendments to FRS 101 'Reduced Disclosure Framework' (2014/15 cycle) issued | Comment period closed on 20 March 2015 |
| 19 February 2015 |
FRED 60 - Draft amendments to FRS 100 Application of Financial Reporting Requirements and FRS 101 Reduced Disclosure Framework issued
|
Comment period closed on 30 April 2015 |
| 16 July 2015 |
Amendments to FRS 101 Reduced Disclosure Framework - 2014/15 cycle and other minor amendments
|
The July 2015 amendments to FRS 101 are effective for periods beginning on or after 1 January 2015, other than those arising from revisions to the Accounting Regulations (i.e. alternative formats for the income statement and statement of financial position) which are effective periods beginning on or after 1 January 2016, with early adoption required if and only if the entity is early adopting the new Accounting Regulations. Note that the July amendments to FRS 101 relating to changes to the Accounting Regulations cannot be early adopted for accounting periods beginning before 1 January 2015. |
| 29 September 2015 |
Revised version of FRS 101 issued
|
Effect for periods beginning on or after 1 January 2015. The July 2015 amendments to FRS 101 are effective for periods beginning on or after 1 January 2015, other than those arising from revisions to the Accounting Regulations (i.e. alternative formats for the income statement and statement of financial position) which are effective periods beginning on or after 1 January 2016, with early adoption required if and only if the entity is early adopting the new Accounting Regulations. Note that the July amendments to FRS 101 relating to changes to the Accounting Regulations cannot be early adopted for accounting periods beginning before 1 January 2015. |
| 11 December 2015 |
FRED 63 Draft Amendments to FRS 101 Reduced Disclosure Framework 2015/16 cycle issued
|
Comment period closed on 31 March 2016. |
| 8 July 2016 |
Amendments to FRS 101 Reduced Disclosure Framework 2015/16 Cycle published
|
The amendments are available from when an entity applying FRS 101 first applies IFRS 15. However the change in company law to permit the equity method in individual financial statements is effective from 1 January 2016 (or from 1 January 2015 if it is adopted early). |
| 8 July 2016 |
FRED 65 Draft amendments to FRS 101 Reduced Disclosure Framework – notification of shareholders published
|
Comments closed on 14 October 2016. |
| 13 December 2016 |
Amendments to FRS 101 and FRS 102 - Notification of shareholders
|
The amendments are effective for accounting periods beginning on or after 1 January 2016. |
| 14 December 2016 |
FRED 66 Draft Amendments to FRS 101 Reduced Disclosure Framework 2016/17 cycle
|
Comments close on 31 March 2017 |
| 12 July 2017 |
Amendments to FRS 101 - 2016/17 Cycle issued
|
The amendments are available from when an entity applying FRS 101 first applies IFRS 16. |
| 30 October 2017 |
FRED 69: FRS 101 Reduced Disclosure Framework - 2017/18 cycle
|
Comments close on 2 February 2018. |
| 14 December 2017 |
Amended by Amendments to FRS 102 – Triennial review 2017 – Incremental improvements and clarifications
|
Effective for accounting periods beginning on or after 1 January 2019. Early application is permitted provided that all the amendments to FRS 101 as a result of the triennial review are applied at the same time. |
| 28 March 2018 |
Revised version of FRS 101 issued
|
Effective for periods beginning on or after 1 January 2015. The July 2015 amendments to FRS 101 are effective for periods beginning on or after 1 January 2015, other than those arising from revisions to the Accounting Regulations (i.e. alternative formats for the income statement and statement of financial position) which are effective periods beginning on or after 1 January 2016, with early adoption required if and only if the entity is early adopting the new Accounting Regulations. Note that the July amendments to FRS 101 relating to changes to the Accounting Regulations cannot be early adopted for accounting periods beginning before 1 January 2015. See above for effective date of December 2017 amendments The amendments as a result of the Triennial review are effective for accounting periods beginning on or after 1 January 2019. Early application is permitted provided that all the amendments to |
| 10 May 2018 |
Amendments to the Basis for Conclusions FRS 101 Reduced Disclosure Framework issued
|
No amendments to FRS 101 have been made. |
| 29 January 2019 |
FRED 70 FRS 101 Reduced Disclosure Framework - 2018/19 cycle issued
|
Comments closed on 30 April 2019. |
| 11 July 2019 | Amendments to FRS 101 - 2018/19 Cycle issued |
The amendments take effect for periods beginning on or after 1 January 2021. If an entity applies the recognition, measurement and disclosure requirements of IFRS 17 early, the amendments to FRS 101 are applied at the same time. |
| 16 December 2019 | FRED 73 ‘Draft amendments to FRS 101 Reduced Disclosure Framework 2019/20 cycle’ |
Comments closed on 16 March 2020. |
| 29 May 2020 | Amendments to FRS 101 - 2019/20 Cycle issued |
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.
|
| October 2020 | Amendment to FRS 101 – Effective date of IFRS 17 |
Changes the effective date of an amendment to the definition of a qualifying entity made in July 2019, effectively allowing relevant insurers to continue to apply FRS 101 for a further two years. The revised effective date for the new definition of a qualifying entity is accounting periods beginning on or after 1 January 2023 |
| December 2020 | FRED 77 Draft amendments to FRS 101 Reduced Disclosure Framework – 2020/21 |
Comments are requested by 28 February 2021 |
| December 2020 | Amendments to reflect changes in UK company law following the UK’s exit from the European Union that come into effect at the end of the Transition Period. |
The effective date for these amendments is accounting periods beginning on or after 1 January 2021. Early application is permitted in some circumstances to provide UK entities with the option to use IAS that are adopted for use within the UK after 31 December 2020, in addition to IFRS that have been adopted in the EU as at this date. This is consistent with the transitional arrangements provided in UK company law for entities preparing ‘IAS accounts’. |
| May 2021 | Amendments to FRS 101 – 2020/21 cycle issued |
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. |
| December 2021 | FRED 79 FRS 101 Reduced Disclosure Framework – 2021/22 cycle issued |
Comments are requested by 1 March 2022. |
| January 2022 | Revised version of FRS 101 issued |
FRS 101 is effective for accounting periods beginning on or after 1 January 2015. Any amendments made to FRS 101 after this date have the same effective date unless otherwise stated and early adoption is permitted to the extent that a qualifying entity can apply the amendments of the underlying IFRS. |
| May 2022 | Amendments to Basis for Conclusions FRS 101 Reduced Disclosure Framework – 2021/22 cycle' issued |
No amendments were proposed to the standard as a result of the annual review. |
| December 2022 | FRED 81 FRS 101 Reduced Disclosure Framework – 2022/23 cycle issued |
Comments are requested by 28 February 2023. |
| December 2022 | Financial Reporting Exposure Draft (FRED) 82 ‘Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review’ issued |
Comments are requested by 30 April 2023. |
| April 2023 | FRED 83 'Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 101 Reduced Disclosure Framework – International tax reform – Pillar Two model rules' issued |
Comments are requested by 24 May 2023. |
| May 2023 | Amendments to Basis for Conclusions FRS 101 Reduced Disclosure Framework – 2022/23 cycle issued |
No amendments were proposed to the standard as a result of the annual review. |
| July 2023 | Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 101 Reduced Disclosure Framework – International tax reform – Pillar Two model rules issued. |
A qualifying entity may take advantage of the disclosure exemptions from when the amendments to IAS 12 are applied. |
| December 2023 | Financial Reporting Exposure Draft 85 Draft amendments to FRS 101 Reduced Disclosure Framework – 2023/24 cycle (FRED 85) issued |
Comments are requested by 4 March 2024. |
| March 2024 | Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review 2024 issued |
Effective 1 January 2026 with earlier application permitted provided all amendments are applied at the same time. If an entity applies these amendments before 1 January 2026 it shall disclose that fact. |
| August 2024 |
Amendments to FRS 101 Reduced Disclosure Framework – 2023/24 cycle published |
The exemptions are available from when the relevant IFRS Accounting Standard is applied. |
| September 2024 |
Revised version of FRS 101 issued |
FRS 101 is effective for accounting periods beginning on or after 1 January 2015. See also above for effective date of subsequent amendments to the standard. |
Scope
FRS 101 can only be applied by entities meeting the following criteria:
- The company must be a qualifying entity (see below);
- it otherwise applies as its financial reporting framework the recognition, measurement and disclosure requirements of adopted IFRS, but makes amendments to adopted IFRS requirements where necessary in order to comply with the Act and the Regulations; and
- The company must state in its financial statements:
i) A brief narrative summary of the exemptions adopted
ii) The name of the parent in whose group financial statements it is consolidated; and
iii) From where those group financial statements may be obtained.
A qualifying entity is a member of a group where the parent of that group prepares publicly available consolidated financial statements which are intended to give a true and fair view (of the assets, liabilities, financial position and profit or loss) and that entity must be included in the consolidation. Under FRS 101, a charity may not be a qualifying entity.
With effect for periods beginning on or after 1 January 2023 (or when the recognition, measurement and disclosure requirements of IFRS 17 are applied, if earlier), the following may not be qualifying entities:
- entities that are both required to apply Schedule 3 to the Regulations and have contracts that are within the scope of IFRS 17 Insurance Contracts; and
- entities that are not companies but are both required to apply requirements similar to those in Schedule 3 to the Regulations and have contracts that are within the scope of IFRS 17.
FRS 101 cannot be applied in consolidated financial statements.
Summary
FRS 101 “Reduced Disclosure Framework” (link to FRC website) sets out the disclosure exemptions (a reduced disclosure framework) for the individual financial statements of subsidiaries, including intermediate parents, and ultimate parents that otherwise apply the recognition, measurement and disclosure requirements of adopted IFRS Standards.
Because of the disclosure reductions, financial statements prepared under FRS 101 do not comply with all of the requirements of adopted IFRSs. Therefore they cannot contain the unreserved statement of compliance set out in IAS 1. This also means that they do not constitute “IAS accounts” under the IAS Regulation and must therefore comply with the requirements of the Companies Act 2006, including the relevant primary statement formats laid out therein.
Entities applying FRS 101 can take exemptions from the following disclosure requirements of IFRSs:
| IFRS | Area | Disclosure Exemption includes |
|---|---|---|
| IAS 7* | Cash flow statement | Exemption for qualifying entities in respect of certain disclosures about supplier finance arrangements conditional on equivalent disclosures being included within the consolidated financial statements in which the qualifying entity is included. Unconditional exemption from all other IAS 7 disclosures. |
| IFRS 2* | Share-based payments |
Exemption from most of the disclosures required by IFRS 2 except for a description of the schemes and certain details about options exercised in the year and options outstanding at the year end. For a subsidiary company, this exemption applies only to arrangements involving the equity instruments of another group entity. For an ultimate parent, this exemption applies only to arrangements involving its own equity instruments and its separate financial statements must be presented alongside the group consolidated financial statements. |
| IAS 8 | IFRSs issued but not effective | The listing of new or revised standards that have not been adopted (and information about their likely impact) may be omitted. |
| IAS 36* | The impairment review | Paragraphs 134 and 135 of IAS 36 require extensive disclosures for each cash generating unit which contains goodwill or an intangible asset with an indefinite life. Exemption is provided from most of these requirements, in particular in relation to assumptions and sensitivities. |
| IFRS 3* | Business combinations | Exemption from many of the disclosure requirements for business combinations during and after the end of the period. Certain basic disclosures including consideration paid and a table of assets and liabilities acquired are still required. |
| IFRS 5 | Discontinued operations | Exemption from providing an analysis of net cash flows attributable to operating, investing and financing activities of discontinued operations. All other disclosure requirements continue to apply. |
| IFRS 6 | Exploration for and Evaluation of Mineral Resources | Exemption from the disclosure of cash flows required by paragraph 24(b) |
| IFRS 7* | Financial instruments | Complete exemption from all of the disclosure requirements of IFRS 7 other than for those instruments where these disclosures are still required to comply with the law. Not available to financial institutions. |
| IFRS 13* | Fair value measurement |
Complete exemption from all of the disclosure requirements of IFRS 13 other than for those instruments where these disclosures are still require to comply with the law. Financial institutions may not use this exemption in relation to financial instruments but may use it in relation to other assets and liabilities. |
| IAS 24 | Related party disclosures |
Exemption for related party transactions entered into between two or more members of a group, provided that any subsidiary party to the transaction is wholly owned by such a member. Exemption from disclosure of compensation for key management personnel and amounts incurred by an entity for the provision of key management personnel services that are provided by a separate management entity. |
| IAS 1 | Comparatives information |
Exemption from comparatives for movements on share capital, PP&E, intangible assets, investment property and biological assets. Additionally, comparative infornmation is not required for the depreciation charge for right-of-use assets by class of underlying asset, additions to right-of-use assets and the carrying amount of right-of-use assets at the end of the reporting period by class of underlying asset. |
| IAS 1 | Other disclosure exemptions including Capital management |
Exemption from the requirement of IAS 1 to:
|
| IFRS 1 | Opening balance sheet | Exemption from the requirement of IFRS 1 to present an opening statement of financial position for qualifying entities adopting FRS 101 for the first time. |
| IFRS 15 | Revenue | Exemption from the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers. |
| IFRS 16 | Leases |
Exemption from the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. Exemption from the requirements of paragraph 58 of IFRS 16, provided that the disclosure of details of indebtedness required by paragraph 61(1) of Schedule 1 to the Regulations is presented separately for lease liabilities and other liabilities, and in total. |
| IAS 16 | Property, plant and equipment |
Exemption from paragraph 74A(b) |
| IAS 12* | Income taxes |
The requirements of paragraphs 88C and 88D of IAS 12 Income Taxes,provided that equivalent disclosures are included in the consolidated financial statements of the group in which the entity is consolidated |
* = equivalent disclosures must be included in the consolidated financial statements of the group in which the entity is consolidated.
Effective date
FRS 101 is effective for periods beginning on or after 1 January 2015. Early adoption is permitted without restriction. See notes above regarding application dates for subsequent amendments to the standard.
