Financial Reporting Standards

From the 1 January 2015 the Financial Reporting Council revised the Financial Reporting Standards (FRS) in the UK and Republic of Ireland.

Please see below an overview of each reporting standard.

FRS 100

FRS 100 Sets out the new financial reporting regime for UK, and explains which standard applies to which entity and when an entity could apply the reduced disclosure framework or follow a SORP.

FRS 101

This standard gives the reduced disclosure framework from EU adopted IFRS for qualifying entities.

It applies to the individual accounts of entities which are included in publically available consolidated accounts.

FRS 103

This standard applies to any company which issues insurance contracts, holds re-insurance contracts or issues financial instruments with a discretionary participation feature. This should be applied in conjunction with FRS 102.

FRS 104

This Interim Financial Reporting is intended to be used when preparing interim financial reports for those entities which apply FRS 102, but it may also be used as basis for pre-preparing interim financial reports for those entities applying FRS 101.

FRS 102

FRS 102 is a single standard based on the IFRS for SME’s and replaces the majority of UK Financial Reporting Standards and UITF Abstracts.

FRS102 should be applied to all entities other than those that apply EU adopted IFRS or FRS101. It will therefore apply to the majority of large, medium and small companies in the UK.

FRS 102 Section 1A - Small Entities

In July 2015 Section 1a of FRS 102 was released which sets out the presentation and disclosure requirements for small companies. Small companies should refer to the full standard for recognition and measurement requirements when preparing financial statement. This is applicable for periods beginning on or after 1 January 2016 and replaces the FRSSE as the reporting standard for small entities.

FRS 102 Reduced Disclosures

FRS 102 also has reduced disclosure provisions for subsidiary companies and their ultimate parents.

For entities that qualify for the reduced disclosures, paragraph 1.12 sets out the disclosure exemptions that can be applied assuming that equivalent disclosures are made in the group consolidated financial statements.

FRS 105 & Micro Entities

This standard is intended for use by companies which qualify as a micro-entity as set out in UK company law, and is effective for periods beginning on or after 1 January 2016. It is based on FRS 102 but has been significantly adapted to reflect the simpler nature and smaller size of a micro-entity.

This is the first standard tailored specifically for micro-entities covering all disclosure and reporting requirements, and therefore micro-entities will not need to refer to FRS 102.

Find out more about FRS

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