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FRS 101, which was published in November 2012, reduced the reporting burden for groups reporting under IFRS by allowing their subsidiaries to use the same accounting standards as in the group accounts but with fewer disclosures.
Today’s announcement is in line with the FRC’s commitment to update the standard at regular intervals to ensure that the reduced disclosure framework maintains consistency with IFRS and so is cost-effective for groups. The FRC intends to review FRS 101 on an annual basis.
The FRC proposes to simplify, in the reduced disclosure framework, the new disclosure requirements of IAS 36 Impairment of Assets and clarify how those applying FRS 101 can adopt the new international accounting practice for investment entities (set out in IFRS 10 Investment Entities and its consequential amendments to IAS 27 Separate Financial Statements), whilst still complying with legal requirements.