Financial reporting standards

A new financial reporting framework applies in the UK for periods commencing on or after 1 January 2015.  This consists of the following:

Companies listed on EU-regulated markets (consolidated accounts)

EU-endorsed IFRS


All entities

FRS 100 - Application of Financial Reporting Requirements

Subsidiaries (and ultimate parents) of groups applying IFRS

FRS 101 reduced disclosure framework

Subsidiaries (and ultimate parents) of groups

FRS 102 - Reduced disclosures for subsidiaries and ultimate parents

Entities not required to apply IFRS (e.g. medium and large private companies)

FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland

Small entities



FRSSE including micro-entities amendments

Entities can continue to apply a more comprehensive standard - the only exception to this is that charities are prohibited from adopting IFRS.

There are further changes to the framework taking effect for accounting periods beginning on or after 1 January 2016 (with some early adoption available). 

These are explained in the relevant sections below:

IFRS adopted in the EU

IFRS adopted in the EU is still required only for the group accounts of listed companies (including AIM-listed companies). The IFRS Foundation provides access free of charge to the current year's consolidated unaccompanied IFRSs (in English as issued by the IASB and published in the Bound Volume). The standards are available via the link below:

IFRS unaccompanied standards

Access to the accompanying documents, illustrative examples, implementation guidance, and bases for conclusions is also available via the IFRS Foundation's subscription-based services or by purchasing print versions of IFRSs via the IFRS Foundation's online store

Reduced Disclosure Framework

For the individual accounts of companies that are members of a group presenting IFRS accounts, FRS 100 introduces new options. If such a company chooses to prepare its individual accounts under IFRS, it may take advantage of the reduced disclosures set out in FRS 101. If the individual accounts are prepared under UK GAAP, these will now be under FRS 102, which also includes reduced disclosures for group companies, in their respective individual accounts.

FRS 102

For all entities not currently preparing accounts under IFRS or the FRSSE (i.e. mostly medium-sized and large private companies but also possibly including the individual accounts of listed companies), full UK GAAP (that is, SSAPs and FRSs) are being replaced by a single standard - FRS 102. The new standard is based on a condensed version of IFRS (the IFRS for SMEs) so there will be greater consistency between UK GAAP and IFRS. 

At fewer than 250 pages, it is also considerably shorter and more user-friendly than the existing standards. Industry-specific SORPs are being updated to reflect FRS 102. FRS 102 is not identical to the IFRS for SMEs and substantive amendments have been made in certain areas to encompass options which exist within existing UK GAAP and EU endorsed IFRS e.g. the ability to revalue fixed assets.

FRS 100, 101 and 102, as well as existing UK standards which remain in force for accounting periods beginning before 1 January 2015 are available from the FRC website

Small entities

The FRSSE remains in force for small entities for accounting periods beginning before 1 January 2016.  From that date, small entities will be required to adopt FRS 102 including section 1A - presentation and disclosure for small entities. 

This means that small entities will follow the recognition and measurement requirements of FRS 102 with specific presentation and disclosure requirements.

 Small entities may early adopt FRS 102 - section 1A for accounting periods beginning on or after 1 January 2015. The current thresholds for small entities are:  turnover - £6.5 million, balance sheet total - £3.26 million, employee numbers - 50.  For accounting periods beginning on or after 1 January 2016, the thresholds increase to:  turnover - £10.2 million, balance sheet total £5.1 million, employees - 50.  The new figures may be adopted early for accounting, but not audit, purposes.

The FRSSE is available to view.


A new category of small company, a 'micro-entity' which may prepare and file a very simplified form of accounts was introduced in company law in 2013. A company may qualify as a micro-entity if it meets two of the following conditions:

1. Turnover

Not more than £632,000

2. Balance sheet total

Not more than £316,000

3. Number of employees

Not more than 10

Please note that additional criteria also apply.

Currently, micro-entities may apply the FRSSE, which contains amendments to align it with the micro-entities legislation.  From accounting periods beginning on or after 1 January 2016 (with early adoption available), a new standard, FRS 105, will apply to the accounts of micro-entities.  It is available from the FRC website.


  • Guidance
  • Corporate and financial reporting

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