The objective of FRS 100 is to set out the applicable financial reporting framework for entities preparing financial statements in accordance with legislation, regulations or accounting standards applicable in the UK and Republic of Ireland.
It applies to financial statements that are intended to give a true and fair view.
FRS 100 was originally issued in 2012 and set out the financial reporting framework applicable from 1 January 2015.
As a result of the implementation of the EU Accounting Directive, the introduction of ‘FRS 105 The Financial Reporting Standard for the Micro-entities Regime’ and the withdrawal of the FRSSE, FRS 100 was revised in 2015. The revised standard sets out the financial reporting framework applicable from 1 January 2016.
The version of FRS 100 issued in March 2018 does not fundamentally change the requirements of the 2015 standard; it is effective from 1 January 2019.
In 2020 amendments were made to the March 2018 edition of FRS 100 to reflect the effects on company law of the withdrawal of the UK from the EU. Further amendments were made to the FRS 100 Application Guidance in November 2022 to reflect those changes to company law and decisions on equivalence.
Options for preparing financial statements
| FRS 105 | FRS 102 Section 1A (and FRS 103) | FRS 102 (and FRS 103) | FRS 101 | Adopted IFRS* | |
|---|---|---|---|---|---|
| Entities eligible for micro-entities regime | ✓ | ✓ | ✓ | ✓ | ✓ |
| Entities eligible for small companies regime | ✓ | ✓ | ✓ | ✓ | |
| Entities not micro or small and not required to apply adopted IFRS* | ✓ | ✓ | ✓ | ||
| Entities required to apply adopted IFRS* | ✓ |
‘FRS 101 Reduced Disclosure Framework’ sets out an optional reduced disclosure framework for the individual accounts of qualifying subsidiaries and parents that otherwise apply the recognition, measurement and disclosure requirements of adopted IFRS.
‘FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland’ sets out the financial reporting requirements that are not applying adopted IFRS, FRS 101 or FRS 105.
Reduced disclosures are available for the individual accounts of subsidiaries and parents.
Section 1A Small Entities sets out different presentation and disclosure requirements available to small entities.
‘FRS 103 Insurance Contracts’ sets out the financial reporting requirements for insurance contracts. It applies to entities that have adopted FRS 102.
‘FRS 105 The Financial Reporting Standard for the Micro-entities Regime’ is based on FRS 102, but adapted to reflect the simpler nature and smaller size of micro-entities and the legal requirements applying to them.
Statement of compliance
When an entity prepares its financial statements in accordance with FRS 101 or FRS 102, a statement of compliance needs to be included in the notes. Entities preparing financial statements in accordance with FRS 102 Section 1A are encouraged to include a statement of compliance. Entities preparing accounts in accordance with FRS 105 must include a statement of compliance in a prominent position on the balance sheet.
Interaction with SORPs
If an entity’s financial statements are prepared in accordance with FRS 102, SORPs will apply in the circumstances set out in those standards. When a SORP applies, the entity should state in its financial statements the title of the SORP and whether its financial statements have been prepared in accordance with the SORP’s provisions that are currently in effect. In the event of a departure from those provisions, the entity should give a brief description of how the financial statements depart from the recommended practice set out in the SORP. You can view a summary of the current status of SORPs on the FRC's website.
Interpretation of equivalence
FRS 101 and FRS 102 permit certain exemptions from disclosures subject to equivalent disclosures being included in the consolidated financial statements of the group to which an entity belongs.
The Companies Act exempts, certain to subject conditions, an intermediate from the requirement to prepare consolidated financial statements where its parent is not established under the UK law (or under the law of an EEA state prior to 1 January 2021). One of the conditions is that the group accounts are drawn up in a manner equivalent to consolidated accounts so drawn up.
The Application Guidance to FRS 100 provides guidance on interpreting the meaning of equivalence in both of these cases. As a result of the withdrawal of the UK from the EU, the Application Guidance was updated in 2022 for changes to UK company law and decisions on equivalence. The changes were effective immediately.
