FRC propose amendments to FRS 101

The Financial Reporting Council (FRC) has published FRED 86 “Draft amendments to FRS 101 Reduced Disclosure Framework”, which has proposed some amendments to the FRS 101 standard. FRS 101 Reduced Disclosure Framework sets out an optional reduced disclosure framework that is available for the individual financial statements of subsidiaries and ultimate parents that otherwise apply the recognition, measurement and disclosure requirements of adopted IFRS. The standard is intended to enable cost effective financial reporting within groups to reduce reporting burdens, particularly for those applying IFRS Accounting Standards in their consolidated financial statements.

Each year, the FRC carry out a review of the standard to decide whether FRS 101 should provide exemptions from new disclosure requirements or whether other consequential amendments are required.

In FRED 86, the FRC have proposed some amendments to the standard, including;

• Amendments to exempt most qualifying entities from the disclosure requirements in IFRS 18 related to management-defined performance measures
• Amendments to exempt qualifying entities from the disclosure of a disaggregation of specified expenses classified by nature (as set out in paragraph 83(b) of IFRS 18), and
• An amendment to prevent entities from applying both FRS 101 and IFRS 19

The proposed amendments will now be subject to a consultation period, with comments welcomed by the FRC until 7 March 2025.