THE FRC is updating its UK GAAP standard on the Reduced Disclosure Framework (FRS 101).
FRS 101, published in November 2012, reduced the reporting burden for groups reporting under IFRS by allowing their subsidiaries to use the same accounting standards as in the group accounts but with fewer disclosures.
The FRC proposes to simplify, in the reduced disclosure framework, the new disclosure requirements of IAS 36 Impairment of Assets and clarify how those applying FRS 101 can adopt the new international accounting practice for investment entities (set out in IFRS 10 Investment Entities and its consequential amendments to IAS 27 Separate Financial Statements), while still complying with legal requirements.
Roger Marshall, FRC board member and chair of the Accounting Council said:"It has been a year since the publication of FRS 101 and a number of important developments have occurred in IFRS. The FRC is committed to provide succinct financial reporting standards that promote efficiency within groups and are cost effective to apply. Therefore we have carried out this first update now so that FRS 101 continues to be a cost effective option for UK groups."
The FRC, which intends to review FRS 101 on an annual basis, invites comments on these proposals. The comment period closes on 21 March 2014.
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