FRS 101: what disclosure exemptions are available

FRS 101 provides a number of disclosure exemptions for qualifying entities, some of which are available automatically and some of which require equivalent disclosure by the parent entity.

Some disclosure exemptions are automatically available such as: 

  • cash flow statements;
  • key management personnel remuneration and transactions with parent companies and wholly owned subsidiaries; and
  • comparative reconciliations for property, plant and equipment, intangible assets and investment property.

Others are available when equivalent disclosures are provided in the consolidated financial statements such as:

  • for non-financial institutions many of the financial instrument and fair value disclosures;
  • many disclosures in respect of business combinations and share-based payment arrangements; and
  • details of key assumptions used for the purposes of impairment testing.

In addition, some of the disclosure exemptions are not available to entities which are financial institutions.

Disclosure exemptions automatically available

First–time adoption

  • The requirement to present an opening statement of financial position at the date of transition (IFRS 1.21).

Primary statements

  • A statement of cash flows for the period (IAS 1.10(d), 111).
  • A statement of financial position as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or makes a retrospective restatement (IAS 1.10(f), 38A-38D,40A-40D).

Other disclosures

  • Comparative period information in respect of the following (IAS 1.38):
    • A reconciliation of shares outstanding at the beginning and end of the period (IAS 1.79(a)(iv));
    • A reconciliation of carrying amount of PPE at the beginning and end of the period (IAS 16.73(e));
    • A reconciliation of carrying amount of intangible assets at the beginning and end of the period (IAS 38.118(e));
    • Reconciliations of investment property as measured under the fair value model and/or cost models at the beginning and end of the period (IAS 40.76 & 79(d)); and
    • A reconciliation of carrying amount of biological assets at the beginning and end of the period (IAS 41.50).
  • Information relating to the entities objectives, policies and processes for managing capital (IAS 1.134-136).
  • Information relating to new IFRS standards which have been issued but which are not yet effective, including an assessment of the possible impact that it will have when it is adopted for the first time (IAS 8.30-31).
  • Disclosure of key management personnel remuneration (IAS 24.17).
  • Disclosure of amounts incurred by the entity for the provision of key management personnel services that are provided by a separate management entity (IAS 24.18A).
  • Disclosure of related party transactions entered between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

Other disclosure exemptions available

The following disclosure exemptions are only available where equivalent disclosures are included in the consolidated financial statements of the group in which the entity is consolidated.

Business combinations

  • Certain information relating to business combinations completed during the reporting period (IFRS 3.62 and IFRS 3 B64(d),(e),(g),(h),(j)-
    (m),(n)(ii), (o)(ii),(p), (q)(ii)).
  • Details of any business combination required by B64 in relation to any business combination that occurred after the end of the reporting period, but before the financial statements were authorised for issue (IFRS 3.B66).
  • Information relating to:
    • incomplete accounting for business combinations;
    • contingent consideration;
    • contingent liabilities;
    • reconciliation of goodwill; and
    • an explanation of any amounts recognised in profit or loss that relates to assets or liabilities acquired in a business combination in the current or a previous period (IFRS 3.B67).

Non-current assets held for sale and discontinued operations.

  • The net cash flows attributable to operating, investing and financing activities of discontinued operations (IFRS 5.33(c)).

Financial instruments

  • All the disclosure requirements of IFRS 7 Financial Instruments: Disclosures. (IFRS 7 - all disclosures).
  • These exemptions are not available to entities which are financial institutions.

Fair value measurement

  • Details of the valuation techniques and inputs used to develop measurements of assets and liabilities measured at fair value.
  • The effect of measurements on total comprehensive income for assets and liabilities measured on a recurring basis using significant unobservable inputs. (IFRS 13.91-99).
  • These exemptions are not available to entities which are financial institutions.

Impairment

  • Details of the valuation technique and key assumptions used to measure fair value less costs of disposal where the fair value is categorised as Level 2 or 3 in the fair value hierarchy and the asset or CGU has been subject to an impairment loss or reversal of impairment loss in the year (IAS 36130(f)(ii) & (iii)).
  • The valuation technique and details of key assumptions used to determine recoverable amount for CGUS containing significant goodwill or intangible assets with an indefinite useful life and sensitivity to assumptions if a reasonable change in a key assumption would result in impairment (IAS 36.134(d)-(f)).
  • For goodwill or intangible assets with indefinite useful lives allocate across multiple cash generating units, details of the key assumptions used in determining the recoverable amount and, sensitivity to assumptions if a reasonable change in a key assumption would result in impairment (IAS 36.135(c)-(e)).

Share-based payments

  • A reconciliation of share options in the year (IFRS 2.45(b)).
  • Details of how fair value of the equity instruments granted during the period was determined. (IFRS 2.46-49).
  • Information about the effect of share-based payments on profit or loss and financial position (IFRS 2.50-52).
  • These exemptions are only available where the entity is either, a subsidiary and the arrangement concerns equity instruments of another group entity, or, where the entity is a parent and the arrangement concerns its own equity instruments and its separate financial statements are presented alongside the consolidated financial statements of the group.

For more information please contact Paul Merris.