Disclosure Considerations

FRS 102 is the principal accounting standard in the UK which sets out the financial reporting requirements for entities that are not applying EU adopted IFRS or FRS 101.

Which Reporting Standard Should My Company Adopt?

FRS 102 is the principal accounting standard in the UK which sets out the financial reporting requirements for entities that are not applying EU adopted IFRS or FRS 101. Qualifying entities can take advantage of certain disclosure exemptions under FRS 102 and entities applying the small entities regime are to report under Section 1A of FRS 102 which allows for significantly reduced disclosure.

FRS 101 sets out the disclosure exemptions available to UK qualifying subsidiaries and parent companies that otherwise apply the recognition, measurement and disclosure requirements of EU adopted IFRS.

What will be disclosed in my public accounts?

FRS 102

FRS 102 RDF

FRS 102 1A

EU adopted IFRS

FRS 101

Income Statement *

Balance Sheet

Cash Flow

Share Based Payments **

Financial Instruments

Related Party Transactions

Income Statement Notes

* A small entity applying FRS 101 may take advantage of Companies Act 2006 Section 444 and not file an Income Statement

** A disclosure may be required for share based payments where a reserve accumulates

A summary of significant accounting policies is always required; details of critical estimates and judgements made by management may also need disclosure. Other disclosures are required dependent on the size of the company as opposed to the reporting standard being followed.

For more information about which reporting standard is best for your business, please contact Louise Morriss below.

Louise Morriss, BFP ACA FCCA, Managing Director

+44 (0)20 7430 5892 / lmorriss@zedra.com

Updated April 2020. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.