FRS 101 Reduced Disclosure Framework

• Will benefit preparers of subsidiary company accounts that are currently prepared under IFRS by offering a reduced disclosure framework.
• Recognition and measurement criteria will remain consistent with IFRS except for certain amendments for government grants and negative goodwill and contingent consideration arising on a business combination.

The following disclosure exemptions are available where the relevant standard has been applied:

1. IFRS 2 Share-based Payment
   Exemption from most of the disclosure requirements of the standard, subject to disclosure still being needed in the following areas:
• a description of each type of share-based payment arrangements included the general terms and conditions
• the weighted average share price at the date of exercise for options exercised in the period
• the range of exercise prices and the weighted average remaining contractual life for outstanding options.
2. IFRS 3 Business Combinations
   Exemption from most of the detailed disclosure requirements of the standard, however, some basic information would still need to be disclosed on the acquisition, including:
• the name of the acquired entity, the date of the acquisition and the percentage equity acquired
• the fair value of the consideration paid and the assets and liabilities acquired.
3. IFRS 5 Non-current Assets Held for Sale
   Exemption from the disclosure of the net cashflows attributable to the operating, investing and financing activities of discontinued operations.
4. IFRS 7 Financial Instruments: Disclosure
   Entities adopting FRS 101 are exempt from the requirements of this standard except for qualifying entities which are financial institutions which must continue to comply with IFRS 7.
5. IFRS 13 Fair Value Measurement
   Entities adopting FRS 101 are exempt from the disclosure requirements of this standard except for qualifying entities which are financial institutions which must continue to comply with IFRS 13.
6. IAS 1 Presentation of Financial Statements
   All qualifying entities are exempt from the requirements to present comparative information for the number of shares outstanding, property, plant and equipment and intangible assets. Additionally, qualifying entities that are not financial institutions are exempt from the requirement to disclose their objectives, policies and processes for managing capital.
7. IAS 7 Statement of Cashflows
   Exemption from this standard and hence entities will not be required to produce a statement of cashflows.
8. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
   Entities will not be required to disclose where they have not adopted standards that have been issued but are not yet effective. They will also be exempt from disclosing the impact of the application of those standards.
9. IAS 24 Related Party Disclosures
   Qualifying entities are exempt from the requirement to disclose key management personnel compensation (note that disclosure of directors’ remuneration is still required as this is mandated in the Companies Act 2006). They are also exempt from the requirement to disclosure related party transactions between wholly owned group companies, including transactions with the parent company.
10.  IAS 36 Impairment of Assets
    Exempt from the requirements to disclose assumptions, valuation techniques and key sensitivities arising from impairment tests.