UK GAAP: reporting options for micro, small and medium/large companies
FRC introduces changes in response to EU Accounting Directive.
The Financial Reporting Council (FRC) has issued a suite of changes that are largely in response to the implementation of the new EU Accounting Directive, and include:
a new standard, FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime
new Section 1A Small Entities of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland
other changes necessary for continued compliance with company law
the annual review of FRS 101 Reduced Disclosure Framework.
The main changes are effective for accounting periods beginning on or after 1 January 2016, with early application permitted for accounting periods beginning on or after 1 January 2015.
The FRC has also made available an Overview of the financial reporting framework, which describes the financial reporting framework applicable for accounting periods beginning on or after 1 January 2016. It includes key differences between the FRSSE and the new requirements set out in FRS 105 and Section 1A of FRS 102.
The reporting options available are:
Micro The definition of a micro-entity is contained in sections 384A and 384B of the Companies Act 2006. The qualifying conditions are met by a company in a year in which it does not exceed two or more of the following criteria: (a) Turnover - £632,000 (b) Balance sheet total - £316,000 (c) Number of employees – 10.
Reporting options:
FRS 105
FRSSE 2015 (one year only)
Section 1A of FRS 102
FRS 102
EU-adopted IFRS
Small The definition of a small entity is contained in sections 382 and 383 of the Companies Act 2006. The qualifying conditions are met by a company in a year in which it does not exceed two or more of the following criteria: The thresholds are: (a) Turnover - £10.2m (b) Balance sheet total - £5.1m (c) Number of employees - 50.
