What does FRS 101 state about comparatives for PPE at the beginning and end of the period?

FRS 101, which is based on the International Financial Reporting Standards (IFRS), allows qualifying entities to prepare their financial statements with some exemptions from the full requirements of IFRS. One of these exemptions pertains to the requirement for comparatives.

According to FRS 101, entities are not required to present comparatives for Property, Plant, and Equipment (PPE) at either the beginning or end of the period. This is particularly beneficial for smaller entities or those who may be preparing financial statements for the first time, as it simplifies the reporting process and reduces the burden of gathering and presenting historical data.

The lack of a requirement for comparatives means these entities can focus on their current period’s financial performance without the added complexity of providing prior period figures for every line item, which can often be resource-intensive. This facilitates a more streamlined approach to financial reporting while still adhering to the broader principles laid out in FRS 101.