The Institute’s Financial Reporting Technical Committee has responded to the Financial Reporting Council's (FRC) Exposure Draft FRED 86 Draft amendments to FRS 101 Reduced Disclosure Framework 2024/25 cycle.
FRS 101 sets out an optional reduced disclosure framework that is available for the individual financial statements of subsidiaries and ultimate parents that otherwise apply the recognition, measurement and disclosure requirements of adopted IFRS. The standard is intended to enable cost effective financial reporting within groups to reduce reporting burdens, particularly for those applying IFRS Accounting Standards in their consolidated financial statements.
Each year, the FRC carry out a review of the standard to decide whether FRS 101 should provide exemptions from new IFRS disclosure requirements or whether other consequential amendments are required.
FRED 86 proposed some minor changes to the FRS 101 standard, including;
- The consideration of disclosures in IFRS 18- Presentation and Disclosure in Financial Statements, and whether these disclosures should be exempted in FRS 101.
- The proposal that an entity who applies FRS 101 should not apply IFRS 19- Subsidiaries without Public Accountability: Disclosures.
In its response, the Institute agreed with the proposed amendments to the standard.
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