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FRC Announces New Accounting Standards for the UK and Republic of Ireland
By Financial Reporting Council
Dec 3, 2012

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The Financial Reporting Council, recently issued FRS 100 Application of Financial Reporting Requirements and FRS 101 Reduced Disclosure Framework.

These new standards are issued as part of the FRC’s fundamental reform of existing accounting standards. The standards will be applicable to all companies and entities in the UK and Republic of Ireland, other than listed groups. They will be effective from 1 January 2015, but may be adopted early.
 
The FRC has taken into account feedback received over many years to issue the first in a suite of accounting standards that will simplify accounting and reporting for unlisted entities, improve reporting of financial instruments and provide cost savings for subsidiaries of listed groups. By using an international-based framework all entities, and users, will be using the same accounting language regardless of size, but a proportionate approach to disclosure aims to meet users’ information needs, without imposing undue reporting burdens.
 
FRS 100: sets out the overall financial reporting requirements, giving many entities a choice of detailed accounting requirements depending on factors such as size, and whether or not they are part of a listed group. Importantly FRS 100 does not require any entities to apply international accounting standards that are not already required to do so, responding to a key piece of feedback from smaller financial institutions and registered providers of social housing.
 
FRS 101: applies to the individual financial statements of subsidiaries and ultimate parents, allowing them to apply the same accounting as in their listed group accounts, but with fewer disclosures. This will reduce the reporting burden on listed groups.
 
Roger Marshall, FRC Board member and Chair of the Accounting Council, said,
 
“I am pleased that, after a long period of development involving extensive consultation with preparers and users, we have issued FRS 100 and FRS 101, which set out a clear and proportionate framework for financial reporting in the UK and Republic of Ireland.
 
Respondents asked us for a reduced disclosure framework, principally so that subsidiaries within groups reporting in accordance with EU-adopted IFRS could use the same reporting principles as the group, but with reduced disclosures, given the often limited use for those financial statements. This will result in cost savings for those groups.  ”
 
FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland will complete the suite of new financial reporting standards. The FRC expects to issue FRS 102 early in 2013.










Roger Marshall,
FRC Board Member and Chair of the Accounting Council


http://www.frc.org.uk/News-and-Events/FRC-Press/Press/2012/November/FRC-announces-new-accounting-standards-for-the-UK.aspx


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