The Financial Reporting Council (FRC) has updated relevant existing publications on UK reporting thresholds, in response to the government’s changes, due to come into effect from 6 April 2025. The FRC has published a summary document that outlines the changes alongside this.

The threshold changes are designed to reduce reporting burdens on smaller businesses, shifting the turnover and balance sheet criteria by around 50%. This moves thousands of companies into smaller size classifications for the purpose of financial reporting, allowing them to produce simpler reports.

The FRC has issued the following publications to help stakeholders understand and meet their reporting responsibilities:

• A summary document outlining the changes to reporting thresholds, along with key considerations for stakeholders.
• Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime (an accompanying impact assessment is also published).
• An updated overview of the financial reporting framework. This aims to assist smaller entities particularly 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 ‘Guidance on the Strategic Report’ (2022).
• An updated version of FRS 102 Factsheet 8 – Climate-related matters.

“The government’s new threshold changes are designed to reduce and simplify the reporting burden for thousands of small and medium-sized 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.”