Julia Irvine 30 Oct 2017 11:41am

No changes to FRS 101 for 2018

The Financial Reporting Council has decided not to make any changes to the reduced disclosure framework standard, FRS 101, despite the implementation of major changes to international financial reporting standards (IFRS).

However, it has decided to defer detailed consideration of any changes that might result from implementation of IFRS 17, Insurance Contracts, until the progress with the standard’s endorsement becomes clearer.

In FRED 69, FRS 101, Reduced Disclosure Framework - 2017/18 Cycle, the UK accounting standard-setter says that it reached its conclusion after reviewing the amendments arising from the projects in the light of potential changes to the disclosure exemptions FRS 101 allows.

It also considered whether the amendments were inconsistent with current UK legal requirements.

As well as IFRS 17, the IFRS projects included: 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; and IFRIC 23, Uncertainty over Income Tax Treatments.

The first four are effective from 1 January 2018 while IFRIC comes into operation in January 2019 and IFRS 17 in January 2021.

FRS 101 sets out an optional reduced disclosure framework which covers the financial reporting requirements for individual financial statements of subsidiaries and ultimate parents that otherwise apply the recognition, measurement and disclosure requirements. It is reviewed annually.

The deadline for comments is 2 February 2018.