FRS 101
FRS 101 cannot be applied in any group accounts or in the individual accounts of a charity. Since accounts prepared under FRS 101 are Companies Act accounts, they must comply with the accounting requirements of the Act. This means that certain amendments to EU-IFRS must be made by an entity adopting FRS 101. They include:
applying the balance sheet and profit and loss account formats of the Act (even if the entity is not a company);
for business combinations:
invoking the true and fair override to support non-amortisation of goodwill;
deferring negative goodwill in the balance sheet for gradual release to profit; and
accounting for contingent consideration on the old UK GAAP basis (recognise best estimate when probable; adjust to goodwill).
Some of the disclosure exemptions under FRS 101 are contingent on the parent's consolidated accounts giving equivalent disclosures. The meaning of "equivalent" is considered in the application guidance to FRS 100. Fewer disclosure exemptions are available to qualifying entities that are financial institutions (as defined). The exemptions of FRS 101 include certain disclosures for:
share-based payment arrangements
business combinations
cash flow statements
related parties