FRS 105

FRS 105 Introduction

FRS 105 was introduced by the FRC to offer a more simplified accounting standard that replaces the FRSSE for qualifying micro entities. The commencement of the Companies (Accounting) Act 2017 (‘Companies Act 2014’) allows micro companies to adopt FRS 105 for periods commencing on or after 1 January 2015.

FRS 105 (The Financial Reporting Standard applicable to the Micro Entities Regime) offers a simplified approach to recognition and measurement in a number of areas in comparison to the equivalent Small Entities requirements in FRS 102 (Section 1A), applicable from the same date.

To qualify as a Micro-Entity and prepare accounts under FRS 105 companies must satisfy at least TWO of the following conditions for two consecutive years (except newly incorporated companies who can apply the criteria in their first accounting period):

  • Turnover €700,000 or less
  • Balance sheet total €350,000 or less
  • Average Number of employees (per month) 10 or less

How Can Relate Accounts Production help?

iXBRL Feature

In order to assist our clients with the transition to FRS 105 an option is given in the program to Follow FRS 105. This option will provide the user with financial statements prepared with minimum disclosures.

Additional disclosure options are also available to allow the user to prepare financial statements suitable for their clients, for example additional user defined notes can be added to the standard set of FRS 105 accounts.

For companies incorporated in the Republic of Ireland they may choose to follow Schedule 3A or Schedule 3 of the Companies Act 2014, to provide more information, rather than the standard Schedule 3B.