The Financial Reporting Council (FRC) has opened a consultation on revising its existing guidance on interim financial reports to ensure consistency with new UK and Irish GAAP (FRS 102, Financial Reporting Standards applicable in the UK and RoI)
The regulator has issued an Exposure Draft, FRED 56 Draft FRS 104 Interim Financial Reporting, calling for comment on its aim to promote informative and understandable interim financial reports under the new accounting framework, effective from 1 January 2015.
Roger Marshall, chair of the FRC’s accounting council, said: ‘Draft FRS 104 is based on IAS 34, Interim Financial Reporting. Using an IFRS-based solution is consistent with the approach adopted for developing new UK and Irish GAAP.’
New UK and Irish GAAP includes FRS 101, Reduced Disclosure Framework; FRS 102; and FRS 103, Insurance Contracts.
The FRC is also planning to withdraw the Reporting Statement Preliminary announcements, which was originally issued by the Accounting Standards Board (ASB) in 1998.
The new interim reporting requirements will be finalised by the end of the first quarter of 2015, and the rules are likely to come into effect for interim periods beginning on or after 1 January 2015.
‘The publication of reliable interim financial reporting improves the ability of investors, creditors or others to understand an entity’s capacity to generate earnings and cash flows and its financial position and liquidity,’ stressed Marshall.
The deadline for comments on the proposals is 12 January 2015 and details are here: https://www.frc.org.uk/Our-Work/Publications/Accounting-and-Reporting-Policy/FRED-56-Draft-FRS-104-Interim-Financial-Reporting.aspx
