FRC consults on proposed amendments to FRS 102 and FRS 101

The Financial Reporting Council (FRC) has issued the following two consultations with proposed amendments to FRS 102 and FRS 101:

 FRED 71 Draft Amendments to FRS 102: Multi-employer defined benefit plans

These proposed amendments have come about as a result of some multi-employer defined benefit plans carrying out exercises which will, for the first time, provide sufficient information to participating employers to facilitate the use of defined benefit accounting.

Therefore, the FRC is proposing to set new and explicit requirements for how an entity should transition from defined contribution accounting to defined benefit accounting when sufficient information becomes available.

The proposed amendments would be effective for accounting periods beginning on or after 1 January 2020, with early application permitted.

The deadline for submission of comments to the FRC is 31 March 2019.

 

FRED 70 Draft amendments to FRS 101 Reduced Disclosure Framework – 2018/19 Cycle

The FRC is proposing to amend the definition of a ‘qualifying entity’ such that entities that are both required to comply with Schedule 3 of SI 2008/410 The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (the ‘Regulations’) and have contracts that are within the scope of IFRS 17 Insurance Contracts may not be a qualifying entity ie, such entities would not be permitted to apply FRS 101. 

This change is considered necessary as certain requirements of IFRS 17 conflict with the requirements of UK company law that apply to non-IAS accounts, primarily the Schedule 3 formats of the primary statements as set out in the Regulations. 

The proposed amendments would be effective for accounting periods beginning on or after 1 January 2021, or when the requirements of IFRS 17 are adopted, if earlier.

The deadline for submission of comments is 30 April 2019.

 

The Financial Reporting Faculty will be responding to both consultations. If you have any views on the proposed amendments then please email frfac@icaew.com

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