When migrating from current standards, you will need to consider which one of the available options will work best for you:
- EU IFRS – required for listed entities but all entities may elect to apply
- FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, a new standard based heavily on the IASB’s “IFRS for SMEs” – all entities, other than those required by regulation to apply EU IFRS can apply. Some reduced disclosure reliefs are included within FRS 102 which apply to certain subsidiaries and parent entities (see “qualifying entities” below)
- FRS 101 “Reduced Disclosure Framework” – a separate standard designed to allow certain subsidiaries and parent entities of Group’s who apply EU IFRS to have common policies without needing to apply the exhaustive disclosure requirements of all IFRSs (see “qualifying entities” below)
- FRS 103 “Insurance Contracts” – a separate standard relevant to entities applying FRS 102 that have insurance contracts
- FRSSE “The Financial Reporting Standard for Smaller Entities” – available only to small entities.
In all cases, you can elect to ‘trade up’ to a higher tier, for example where you may have future plans towards a possible listing or other fund raising opportunities in mind or for peer group comparison purposes.