The Financial Reporting Council (FRC) consulted on the 2025/26 annual review cycle of FRS 101 in Financial Reporting Exposure Draft (FRED) 88, which proposed no amendments after considering the developments in IFRS accounting standards during the relevant year, ruling out changes to disclosures related to contracts referencing nature-dependent electricity at this stage.

Limited drafting changes were made ‘to improve clarity and better articulate certain aspects of FRS 101, and for consistency with amendments to FRS 102 and FRS 105’, the FRC said.

This means the FRC has decided not to amend FRS 101 in relation to IFRS changes to IFRS 7 Financial Instruments – Disclosures, and IFRS 9 Financial Instruments in connection to contracts referencing nature-dependent electricity. However, these rules are likely to change in the future when the International Accounting Standards Board (IASB) issues more detail on a new related standard later this month.