FRC consults on annual review of FRS 101

The Financial Reporting Council (FRC) has released FRED 69 covering its annual review of FRS 101 Reduced Disclosure Framework and has concluded no changes are required at this point, with work on IFRS 17 Insurance Contracts deferred until a clearer picture of the progress of its endorsement is known

The FRC carries out an annual review of FRS 101 Reduced Disclosure Framework to provide additional disclosure exemptions as IFRS evolves and to respond to stakeholder feedback about other possible improvements. This is an optional standard that is intended to enable cost-efficient financial reporting within groups, particularly those applying EU-adopted IFRS in their consolidated financial statements.

The regulator has completed six projects since those considered in the review for the 2016/17 cycle, which was performed in August 2016.

Of these, five are judged not to have introduced any changes which require amendments to be made to FRS 101 as a result. They are: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts – Amendments to IFRS 4; IFRIC 22 Foreign Currency Transactions and Advance Consideration; Annual Improvements to IFRS Standards 2014–2016 Cycle; Transfers of Investment Property – Amendments to IAS 40; IFRIC 23 Uncertainty over Income Tax Treatments.

The FRC says it requires more detailed consideration of IFRS 17 Insurance Contracts, which is the sixth project. However, the regulator says this work should be deferred until a clearer picture of the progress with the endorsement of the standard is known.

The consultation closes on 2 February 2018.

FRED 69 FRS 101 Reduced Disclosure Framework 2017/18 cycle is here.

Report by Pat Sweet

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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