FRS 101 and Leptokurtic frequency distribution: Difference between pages

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Financial Reporting Standard 101, dealing with the Reduced Disclosure Framework for financial reporting in the UK and the Republic of Ireland.
A leptokurtic frequency distribution (or leptokurtotic distribution) has a larger number of values clustered at the peak and in the tails, than a comparable normal distribution with the same variance and mean.


FRS 101 applies to companies which are members of larger public groups.
A possible explanation for this shape is that the market under review is mean reverting for small market movements (explaining the clustering at the peak) and trending for large market movements (explaining the clustering in the tails).


FRS 101 sets out reduced disclosure requirements (within the framework of IFRS) for "qualifying entities".
== See also ==
* [[Frequency distribution]]
* [[Leptokurtosis]]
* [[Lognormal frequency distribution]]
* [[Mean reversion]]
* [[Normal distribution]]
* [[Normal frequency distribution]]
* [[Tail]]
* [[Trend analysis]]
* [[Volatility smile]]


Qualifying entities for this purpose are members of groups where:
(i) The parent of the group prepares publicly available consolidated financial statements; and
(ii) The qualifying entity is included in the consolidation.
==See also==
* [[FRS 100]]
* [[FRS 102]]
* [[IFRS]]
[[Category:Accounting,_tax_and_regulation]]

Revision as of 14:19, 23 October 2012

A leptokurtic frequency distribution (or leptokurtotic distribution) has a larger number of values clustered at the peak and in the tails, than a comparable normal distribution with the same variance and mean.

A possible explanation for this shape is that the market under review is mean reverting for small market movements (explaining the clustering at the peak) and trending for large market movements (explaining the clustering in the tails).

See also