FRS 101: frequently asked questions

Below are some answers to recent questions we have had around the changes to FRS 101. 

I have a subsidiary reporting under EU-adopted IFRS. The reduced disclosure framework sounds attractive. Does it mean I can simply remove disclosures from the accounts?

It is not quite that simple! 

FRS 101 accounts must comply with the Companies Act and associated Regulations. 

To adopt FRS 101 (the 'reduced disclosure framework'), the subsidiary’s results, assets and liabilities must be consolidated in publicly available financial statements that are intended to give a true and fair view. 

Some disclosures otherwise required by EU-adopted IFRS can only be omitted if ‘equivalent disclosures’ are included in the consolidated accounts (see Q7 and Q8). Other exemptions, for example share-based payment disclosures, are subject to further conditions.

FRS 101 accounts must also include a brief narrative summary of the disclosure exemptions adopted, the name of the parent in whose accounts the subsidiary’s results, assets and liabilities are consolidated and from where those consolidated financial statements may be obtained. 

For more information please contact Paul Merris.