FRS 101 Reduced Disclosure Framework can only be applied by a qualifying entity, usually a UK private company in a listed group, in its individual financial statements. Financial statements prepared under FRS 101 are UK GAAP Companies Act accounts that use the recognition and measurement principles of International Financial Reporting Standards (IFRS), with some amendments to comply with UK company law.

A number of disclosure exemptions from full IFRS requirements are available, most of which are predicated on the existence of equivalent disclosures in the parent’s consolidated accounts.