Section 1A of FRS 102 was introduced to replace FRSSE (Financial Reporting Standard for Smaller Entities) and can be optionally adopted by small entities for financial periods beginning on or after 1 January 2016.
In order to qualify as a small entity and therefore apply the reduced disclosure requirements of Section 1A the entity must meet two of the following conditions;
Under Section 1A the entity is not required to follow the disclosure requirements specified by Sections 4 to 35 of FRS 102.
In order to assist our clients with the transition from FRSSE to Section 1A an option has been provided in the application to Follow FRS 102 Section 1A. To select this option the entity’s reporting size must be set to small in the Compliance Database, the entity must be following the Companies (Accounting) Act 2017 (ROI) / Companies, Partnerships and Groups Accounts Regulations 2015 (UK) and FRS 102. Selecting Section 1A in the Compliance Database will provide the user with financial statements prepared with the disclosures required by Section 1A of FRS 102.
Additional disclosure options are also available to allow the user to provide more information and tailor the financial statements to meet the individual needs of their clients, for example additional user defined notes can be added to the standard set of accounts.
For companies incorporated in the Republic of Ireland they may choose to additionally follow Schedule 3 of the Companies Act 2014, to provide more information, rather than the standard Schedule 3A.