FRC amends FRS 105 to reflect legislative change and align better with international accounting standards
THE FRC has issued amendments to FRS 105 – Limited Liability Partnerships and Qualifying Partnerships.
Following a change in legislation, which comes into force today, LLPs and qualifying partnerships can apply the micro-entities regime.
FRS 105 is an accounting standard intended for financial statements of companies which qualify for the micro-entities regime. It is effective for accounting periods beginning on or after 1 January 2016, with early application is permitted. The FRC has withdrawn the financial reporting standard for Smaller Entities from the effective date of FRS 105.
The move was made in order to make it more consistent with international accounting standards.
FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime has been amended to reflect the changes.
Paul George, FRC’s executive director for corporate governance and reporting said: “In issuing these amendments we are reflecting a change in the law, which makes the simplified micro-entities regime that is already available to the smallest companies, also available to eligible LLPs and qualifying partnerships.”