FRC issues draft amendments to FRS 101 ‘Reduced Disclosure Framework’
News types: Consultation Announcement
Published: 13 December 2024
The Financial Reporting Council has today issued FRED 86 ‘Draft amendments to FRS 101 Reduced Disclosure Framework’ arising from of its annual review of FRS 101 for the 2024/2025 cycle.
FRED 86 sets out a number of proposals that aim to ensure that FRS 101 will continue to provide cost-effective disclosure reductions for those entities applying the Standard. These proposals relate to developments in IFRS Accounting Standards, notably new standards, IFRS 18 ‘Presentation and Disclosure in Financial Statements’ and IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’.
Specific proposals include:
- A new exemption from some new requirements in IFRS 18, including those that require disclosure in relation to management-defined performance measures.
- An amendment preventing qualifying entities from applying both FRS 101 and IFRS 19.
FRED 86 will be open for comment until 7 March 2025.
Mark Babington, FRC’s Executive Director of Regulatory Standards, said:
"FRS 101 continues to provide an effective framework for businesses to streamline their reporting where possible, enabling group reporting to reduce burdens and deliver cost effective, transparent financial reporting. These proposed amendments provide clarity for entities applying IFRS Accounting Standards at group level, while also limiting additional costs of reporting for these entities."
Alongside the exposure draft, stakeholders are also directed to review the FRC’s explainer that sets out the relationship between FRS 101 and IFRS 19.