FRS 105

FRS 105 is a financial reporting standard for UK companies that qualify as micro-entities. This standard allows such companies to prepare and file simplified financial statements with reduced disclosure requirements compared to larger entities.

Micro-entities are companies that meet at least two of the following criteria: turnover of £1,000,000 or less, a balance sheet total of £500,000 or less, and 10 or fewer employees.

Under FRS 105, micro-entities must file an income statement, a balance sheet, and minimal explanatory notes, including any relevant director transactions, with Companies House annually. This reduces the administrative burden by simplifying reporting requirements for micro-entities.