FRS 101 may be applied to the individual accounts of a qualifying entity that otherwise applies the recognition, measurement and disclosure requirements of EU-adopted International Financial Reporting Standards (IFRS). A qualifying entity is a member of a group where the parent of the group prepares publicly available consolidated financial statements and that member is included in the consolidation. Such consolidated financial statements need only intend to give a true and fair view and hence may be prepared under accounting frameworks other than IFRS, such as US accounting standards. This definition would include the entity accounts of a parent company as well as the financial statements of subsidiary companies. Consolidated accounts are not included in the scope of FRS 101. Parents or subsidiaries currently applying UKGAAP would be required to transition to the recognition and measurement criteria of IFRS, subject to certain amendments, should they wish to apply FRS 101. Should they wish to continue to apply UKGAAP FRS 102 will contain disclosure exemptions for their individual financial statements.
The conditions are:
The following disclosure exemptions are available where the relevant standard has been applied: