The Financial Reporting Council (FRC) is consulting on proposals for the first update to its UK GAAP standard on the Reduced Disclosure Framework (FRS 101), with the aim of simplifying some requirements in the light of developments in IFRS.

FRS 101, which was published in November 2012, was designed to reduce the reporting burden for groups reporting under IFRS by allowing their subsidiaries to use the same accounting standards as in the group accounts but with fewer disclosures.

The FRC has said it will update the standard at regular intervals to ensure that the reduced disclosure framework maintains consistency with IFRS and so is cost-effective for groups.

In this first annual update, the regulator proposes to simplify the new disclosure requirements of IAS 36 Impairment of Assets. It is also seeking to clarify how those applying FRS 101 can adopt the new international accounting practice for investment entities (set out in IFRS 10 Investment Entities and its consequential amendments to IAS 27 Separate Financial Statements), whilst still complying with legal requirements.

Roger Marshall, FRC board member and chair of the Accounting Council said: 'The FRC is committed to provide succinct financial reporting standards that promote efficiency within groups and are cost effective to apply. Therefore we have carried out this first update now so that FRS 101 continues to be a cost effective option for UK groups'.

The proposals are open for comment period until 21 March 2014, and details of the amendments are available HERE