ACCA Strategic Business Reporting (SBR) Practice Exam

What is NOT one of the UK GAAP reporting requirements?

1. Full EU IFRS

2. FRS 101 reduced disclosure framework

3. FRS 106 for small entities

4. FRS 105 - micro entities regime

The correct answer is: FRS 106 for small entities

The correct answer is that FRS 106 for small entities is not a reporting requirement under UK GAAP. In the context of UK GAAP, financial reporting is primarily governed by the FRS 102 standard and its various frameworks to accommodate different sizes and types of entities. FRS 101 provides a reduced disclosure framework that allows qualifying entities to comply with International Financial Reporting Standards (IFRS) while enjoying reduced disclosure requirements. FRS 105 pertains specifically to micro entities and is designed to simplify reporting obligations for the smallest businesses. These frameworks aim to enhance clarity and reduce the burden of compliance depending on the size and complexity of the entity's operations. In contrast, FRS 106 is associated with the previous framework for accounting for employee benefits and does not exist in the current reporting requirements under UK GAAP, making it the option that does not correlate with the UK GAAP reporting framework used currently by entities in the UK.