FRC issues amendments to FRS 101 reduced disclosure framework
The Financial Reporting Council (FRC) has issued its final amendments to FRS 101 Reduced Disclosure Framework as part of its annual review cycle
14 Jul 2017
FRS 101 is reviewed annually to ensure that the reduced disclosure framework continues to be effective in providing disclosure reductions when compared with EU-adopted IFRS.
The FRC’s amendments provide certain disclosure exemptions in relation to IFRS 16 Leases.
FRS 101 requires an entity to apply EU-adopted IFRS subject to specified disclosure exemptions. Therefore without intervention to amend FRS 101, an entity applying FRS 101 would need to provide all the disclosures required by any new IFRS or amendments to existing standards issued.
The amendments to FRS 101 provide a number of disclosure exemptions for both lessees and lessors.
Following feedback from respondents to FRED 66 Draft amendments to FRS 101 – 2016/17 cycle, in addition to the exemption from having to provide a single disclosure note for all lease-related information, the amendments also provide a disclosure exemption for lessees from the requirement to disclose a maturity analysis of lease liabilities (provided the company law requirement to provide details on indebtedness is presented separately for lease liabilities and other liabilities and in total), and further exemptions have been provided for lessors from certain of the disclosures that would otherwise be required by IFRS 16.
In its accompanying impact assessment, the FRC says it believes that the amendments to FRS 101 will reduce the cost of compliance with FRS 101.
Amendments to FRS 101 Reduced Disclosure Framework 2016/17 cycle is here.
Impact Assessment and Feedback Statement Amendments to FRS 101 Reduced Disclosure Framework 2016/17 cycle is here.