No amendments to FRS 101 Reduced Disclosure Framework in annual review

There are no changes to FRS 101 Reduced Disclosure Framework following the Financial Reporting Council’s (FRC’s) annual review of the standard, while the regulator says it will review the impact of IFRS 17 Insurance Contracts in more detail when a clearer picture of the endorsement of the standard is known

FRED 69 FRS 101 Reduced Disclosure Framework – 2017/18 cycle was issued in October 2017 and the comment period closed on 2 February 2018.  Three accountancy firms and one accounting body responded and all agreed there should be no amendments during this review cycle.

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.

The Basis for Conclusions FRS 101 Reduced Disclosure Framework has been amended to note developments following the release of IFRS 17.

A new paragraph 61A has been introduced, which states: ‘In May 2017, the IASB [International Accounting Standards Board (IASB) issued IFRS 17 Insurance Contracts. As a result of the 2017/18 FRS 101 review cycle, it was concluded that a more detailed consideration of this standard is required but that this would be deferred until a clearer picture of the progress of the endorsement of the standard is known.

‘Company law contains specific requirements for insurance companies, in terms of both the presentation and the determination of provisions. IFRS 17 will need to be considered in more detail to determine whether there are any inconsistencies with company law, and if so what options might be available for addressing them.’

In addition, the FRC has updated its table of IASB publications to reflect those that were considered in this review.

These include 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; and Transfers of Investment Property – Amendments to IAS 40.

IFRS 17 Insurance Contracts is listed as TBC, while endorsement of IFRIC 23 Uncertainty over Income Tax Treatments is expected in Q3 2018.

Feedback Statement FRED 69 FRS 101 Reduced Disclosure Framework 2017/18 cycle is here: https://www.frc.org.uk/getattachment/49127475-4531-4b0c-b155-b9349daf724...

FRC Amendments to Basis for Conclusions FRS 101 Reduced Disclosure Framework 2017/18 cycle

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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