WIREDGOV

The Financial Reporting Council (FRC) has recently issued an Exposure Draft (FRED 62) proposing limited scope improvements to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Irelandrelating to financial institutions and retirement benefit plans only.

The proposals are intended to simplify the preparation of disclosures about financial instruments for the entities affected, whilst increasing the consistency with disclosures required by EU‑adopted IFRS that users of the financial statements will often be familiar with.

Melanie McLaren, Executive Director of Codes and Standards said:

“We are issuing FRED 62 to respond to stakeholders’ concerns that certain disclosures required from financial institutions and retirement benefit plans could be made both more cost‑effective and more consistent with IFRS.

The changes proposed in FRED 62 will not affect the majority of entities applying FRS 102 and therefore should not delay or disrupt their implementation plans.”

The proposed improvements are intended to be effective for accounting periods beginning on or after 1 January 2017, with early application permitted.  This means it is possible for entities to apply the changes in financial statements for accounting periods ending on 31 December 2015 provided they have not been approved by the time that these proposals are finalised.

Notes to editors:

1. The FRC is responsible for promoting high quality corporate governance and reporting to foster investment.  We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work.  We represent UK interests in international standard-setting.  We also monitor and take action to promote the quality of corporate reporting and auditing.  We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
2. Responses to FRED 62 Draft amendments to FRS 102 – Fair value hierarchy disclosures can be sent to ukfrs@frc.org.uk and should be received no later than 31 January 2016.
3. All Press enquiries should be directed to:  

• Peter Timberlake, Head of Communications, on telephone: 020 7492 2397/ 07768 502332, or email: p.timberlake@frc.org.uk.
• Rita Carolan, Communications Manager, on telephone: 020 7492 2307/ 07428 149096 or email: r.carolan@frc.org.uk.
• Alana Sinnen, Communications Manager, on telephone: 020 7492 2395/ 07949 000526 or email: a.sinnen@frc.org.uk.

FRED 62: Draft amendments to FRS 102 Financial Reporting Standard applicable in the UK and Republic