The UK Financial Reporting Council (FRC) has wrapped up its 2025/26 review of FRS 101 and confirmed that there will be no changes to the reduced disclosure framework arising from new International Financial Reporting Standards (IFRS) Accounting Standards.
FRS 101 offers an optional reduced disclosure regime for qualifying entities, aimed at keeping group reporting efficient and cost-effective when the parent prepares consolidated financial statements under IFRS Accounting Standards.
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The framework is designed to support proportionate reporting by matching disclosure requirements more closely to users’ information needs.
As part of its annual review process, the FRC consulted on proposed changes through Financial Reporting Exposure Draft (FRED) 88.
The document suggested that no amendments were necessary for this cycle after considering IFRS developments during the period under review.
“Concluding its annual review cycle, the final amendments align with the FRED 88 proposals, making no changes to FRS 101 in respect of new IFRS pronouncements,” the FRC said in a statement.
However, the FRC has introduced limited wording adjustments. These drafting changes are aimed at improving clarity, explaining certain elements of FRS 101 more precisely.
Additionally, the FRC noted that the draft changes are in line with the terminology with related standards, including Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
It added that the changes also align with FRS 105 The Financial Reporting Standard applicable to the Micro‑entities Regime – Adapted formats.
In February, the FRC approved FRS 102 changes on presenting balance sheets and profit and loss accounts.
