The UK Financial Reporting Council (FRC) issued amendments to Financial Reporting Standard (FRS) 101, Reduced Disclosure Framework — 2025/26 Cycle, which brings to a close the latest annual review of the standard. The limited drafting changes focus on improving clarity and better articulating certain aspects of FRS 101.
The regulator’s final amendments align with the Financial Reporting Exposure Draft 88 proposals, making no changes to FRS 101 in respect of new IFRS pronouncements, a news release said.
Instead, the release said, the changes look to improve clarity, articulation, and consistency with amendments to FRS 102, the standard applicable in the UK and Ireland, and FRS 105, the standard designed for micro-entities.
“FRS 101 is an optional reduced disclosure framework available to qualifying entities and is intended to enable cost-effective financial reporting within groups, particularly those applying IFRS accounting standards in their consolidated financial statements,” the release said. “FRS 101 plays an important role in supporting entities to deliver proportionate financial reporting, utilising a framework appropriate to users’ information needs.”
FRC outlines where digital reporting could be enhanced
The FRC also published its latest review of structured digital reporting by UK listed companies, identifying areas where relatively simple improvements would significantly enhance the quality, consistency, and usability of digital financial reporting.
The report draws on a detailed review of 30 UK listed companies’ 2024/25 annual reports, alongside broader market analysis and engagement with preparers, software providers, and other stakeholders.
The FRC emphasises that these issues are often avoidable and can be addressed through stronger review processes, clearer ownership of tagging decisions, and better use of existing guidance and tools, a news release said.
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