In response to the UK government’s changes to company size thresholds, the UK Financial Reporting Council (FRC) issued updates to several standards and publications to provide clarity for those reporting in line with the updated framework.
The government’s changes are designed to ease reporting burdens for companies, a news release said. The changes remove some reporting requirements and establish new criteria for annual turnover and balance sheet total.
“The government’s new threshold changes are designed to reduce and simplify the reporting burden for thousands of small and medium-size businesses, which are the backbone of the UK economy,” said Jenny Carter, the FRC’s director of accounting and reporting policy. “To support the new changes, the FRC has updated a suite of relevant publications and issued a summary document so that eligible businesses have clarity on the new framework and are able to take advantage of the simplification in reporting requirements.”
In response to the government changes, set to take effect from 6 April, the FRC issued the following to help stakeholders understand and meet reporting responsibilities:
- A summary document outlining the changes to company size thresholds, along with key considerations for stakeholders.
- Amendments to Financial Reporting Standard (FRS) 102 and FRS 105, applicable to companies in the UK and the Republic of Ireland, along with an updated FRS 102 factsheet addressing climate-related matters.
- An updated overview of the financial reporting framework. This aims to assist particularly smaller entities by providing an overview of the simpler financial reporting regimes that may be available to them.
- Updated and streamlined scoping tables that set out Companies Act 2006 disclosure requirements for the strategic report, the directors’ report, and the energy and carbon report. This publication supersedes Appendices II, III, IV(a), and IV(b) in the 2022 Guidance on the Strategic Report.
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