20 February 2020
The Financial Reporting Council (FRC) is proposing two minor amendments to FRS 101 Reduced Disclosure Framework in FRED 73.
An exemption from the disclosure of cash ﬂows required by paragraph 24(b) of IFRS 6 Exploration for and Evaluation of Mineral Resources. Stakeholders indicated that it was unclear whether the existing exemption from the requirements of IAS 7 meant qualifying entities could also take an exemption from the disclosure of cash flows required by paragraph 24(b) of IFRS 6.
An amendment to the exemption from paragraph 33(c) of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, removing the condition that this exemption is only available when equivalent disclosures are made in the relevant consolidated ﬁnancial statements of the group in which the entity is consolidated. This is for consistency with the exemption from the presentation of a statement of cash ﬂows required in IAS 7. Disclosure exemptions linked to the statement of cash ﬂows should be based on the same conditions as the exemption from the preparation of the statement itself.
These proposed amendments will be effective for ﬁnancial statements approved after the amendments have been ﬁnalised.
In addition, it was decided that no amendments were needed to FRS 101 from the following International Accounting Standards Board (IASB) projects:
- deﬁnition of a Business (Amendments to IFRS 3); and
- deﬁnition of Material (Amendments to IAS 1 and IAS 8).
New disclosure requirements introduced into IFRS 7 Financial Instrument Disclosures as a result of the IASB issuing Interest Rate Benchmark Reform, will be considered formally as part of the 2020/21 cycle.
If you require any further information, please speak to Paul Merris.