The Financial Reporting Council (FRC) has concluded its annual review of FRS 101 and has issued ’Amendments to FRS 101 Reduced Disclosure Framework – 2025/26 cycle’
FRS 101 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 IFRS disclosure requirements or whether other consequential amendments are required.
In this review, the FRC decided that no amendments were necessary in respect of the new IASB pronouncements Contracts Referencing Nature-dependent Electricity—Amendments to IFRS 9 and IFRS 7 and Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures. The Basis for Conclusions has been updated to explain this.
In addition, some minor drafting improvements have also been made to the standard.
In 2025, Chartered Accountants Ireland responded to the FRC’s exposure Draft “FRED 88 FRS 101 Reduced Disclosure Framework- 2025/26 cycle”, which set out the proposed changes. The institute noted its agreement with these proposed changes.
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