Financial reporting: FRS 102 – the recent changes


In January 2015, the Financial Reporting Council (FRC) restructured the rules governing financial reporting. 

6 revised standards were introduced with the aim of providing businesses with specific reporting requirements according to their size and complexity.

Several changes have recently been made to FRS 102 (the Financial Reporting Standard applicable in the UK and Republic of Ireland). 

This blog post looks at the FRS 102 amendments made over the past year.

Directors’ loans

Small businesses are now able to measure and record a loan provided by a director at its face value, rather than its present value (its transaction price plus future interest payments). 

Allowing businesses to record directors’ loans at the lower transaction price will lower its recorded liability. 

These loans must be provided by a person who is both a director and shareholder of the business, or a close family member of that person.

The FRC states this is a temporary amendment but signalled it may be introduced on a permanent basis following the consultation process.

Disclosure exemptions

An FRS 102 amendment made in December 2016 removed the need for businesses to report to shareholders in writing when they are granted a disclosure exemption. 

FRS 102 disclosure exemptions include:

  • submitting a cashflow statement
  • disclosing related party transactions
  • disclosing information relating to financial instruments.

Companies were previously obliged to seek the approval of their shareholders for the use of disclosure exemptions through a written notification.

Contact us

Our team provides professional advice on financial reporting, whether you report using the FRS 102 or the FRS 105 as a micro-business.

Alternatively, we can take care of your accounts for you. We will ensure your business files its accounts accurately and on time.

Contact us on 01628 631 056 or email for information.