Any accounts not prepared fully in accordance with international accounting standards (ie, International Financial Reporting Standards (IFRS)) are ‘Companies Act accounts’ in UK company law. This includes accounts prepared under FRS 101 Reduced Disclosure Framework. Therefore, FRS 101 accounts need to comply fully with the requirements in the Companies Act 2006 and related accounting regulations.

Although the purpose of FRS 101 is to mirror the recognition and measurement requirements of IFRS as far as possible, there are a few areas where FRS 101 differs because the accounting requirements of full IFRS are not compatible with UK law.