FRS 103 and Mid-sized companies: Difference between pages

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''UK and Irish accounting.''
Smaller, large companies.


Financial Reporting Standard 103, 'Insurance Contracts', which deals the consolidated accounting and reporting requirements for entities in the UK and Republic of Ireland whose activities include issuing insurance.
Often firms are classified as small, medium or large. Different definitions of the categories apply for different purposes, in different jurisdictions and in formal and informal use.


FRS 103 applies to reporting periods starting on or after 1 January 2015.  
A common grouping is [[Small and Medium-sized Enterprises]] (SMEs). They may benefit from easier financial reporting requirements, tax provisions or eligibility for various government-provided support.


Most firms are small, some are medium-sized and few are large. But the size of firms in the large category vary greatly. It has become useful to distinguish smaller large companies for some purposes.


FRS 103 is relevant to entities applying FRS 102 (whether or not they are ‘insurance companies’) regarding both:
For example, in European Union usage, SMEs do not exceed €43m in turnover while large companies turn over many billions. Opportunities of many kinds vary materially with a firm's size, for example, the available range of investment and financing opportunities.
#Insurance contracts that the entity issues, and
#Reinsurance contracts that the entity holds.


In the UK, the idea of Mid-sized companies, with turnover of up to £500m and of Mid-sized companies with up to £1bn turnover has developed. By 2015 the idea of mid-size was taken up by some authors in euro-terms as a broad Mid-sized company range up to €1.2bn turnover.


==See also==
No doubt terminology will continue to develop until its use in law and regulation makes further change more difficult or confusing.
* [[FRS 100]]
* [[FRS 101]]
* [[FRS 102]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 07:05, 11 August 2015

Smaller, large companies.

Often firms are classified as small, medium or large. Different definitions of the categories apply for different purposes, in different jurisdictions and in formal and informal use.

A common grouping is Small and Medium-sized Enterprises (SMEs). They may benefit from easier financial reporting requirements, tax provisions or eligibility for various government-provided support.

Most firms are small, some are medium-sized and few are large. But the size of firms in the large category vary greatly. It has become useful to distinguish smaller large companies for some purposes.

For example, in European Union usage, SMEs do not exceed €43m in turnover while large companies turn over many billions. Opportunities of many kinds vary materially with a firm's size, for example, the available range of investment and financing opportunities.

In the UK, the idea of Mid-sized companies, with turnover of up to £500m and of Mid-sized companies with up to £1bn turnover has developed. By 2015 the idea of mid-size was taken up by some authors in euro-terms as a broad Mid-sized company range up to €1.2bn turnover.

No doubt terminology will continue to develop until its use in law and regulation makes further change more difficult or confusing.