FRC releases updates to reflect reporting threshold amendments
News types: Codes and Standards Announcements
Published: 21 March 2025
In response to the Government’s changes to UK reporting thresholds, due to come into effect from 6 April 2025, the Financial Reporting Council (FRC) has today released updates to relevant existing publications. The FRC has also published a summary document, outlining the changes to provide clarity for those reporting in line with the updated framework.
The changes, introduced in the ‘The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024’ (SI 2024/1303), are designed to reduce the reporting burden on companies by:
- Increasing the turnover and balance sheet criteria that help determine whether a company is a micro-entity or small, or medium-sized, or large by approximately 50%. This threshold will see many companies benefit from lighter touch financial reporting, non-financial reporting and audit requirements.
- Removing several reporting requirements from the directors’ report where overlap with other reporting requirements or little material value to users of company reporting has been identified.
To help stakeholders understand and meet their reporting responsibilities, the FRC has issued the following publications:
- A summary document outlining the changes to reporting thresholds, along with key considerations for stakeholders.
- Amendments to ‘FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and ‘FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime’ (an accompanying impact assessment is also published).
- An updated Overview of the financial reporting framework. This aims to assist particularly smaller entities by providing an overview of the simpler financial reporting regimes that may be available to them.
- Updated and streamlined Scoping Tables that set out Companies Act 2006 disclosure requirements for the strategic report, the directors’ report and the energy and carbon report. This publication supersedes Appendices II, III, IV(a) and IV(b) in the ‘Guidance on the Strategic Report’ (2022).
- An updated version of FRS 102 Factsheet 8 - Climate-related matters.
Jenny Carter, the FRC’s Director of Accounting and Reporting Policy, said:
“The Government’s new threshold changes are designed to reduce and simplify the reporting burden for thousands of small and medium sized businesses, which are the backbone of the UK economy.
To support the new changes the FRC has updated a suite of relevant publications and issued a summary document so that eligible businesses have clarity on the new framework and are able to take advantage of the simplification in reporting requirements.”