What FRS 105 is, which companies can use it, and what a micro-entity’s accounts must include.
FRS 105 is the accounting standard for micro-entities, the smallest UK companies. It lets you prepare much simpler accounts than larger companies. This guide explains what FRS 105 is, who can use it, and what your accounts must include.
What FRS 105 is
FRS 105 is the Financial Reporting Standard applicable to the micro-entities regime. It strips company accounts back to the essentials, with a short balance sheet and profit and loss account and almost no notes.
Which companies can use it
You can use FRS 105 if your company qualifies as a micro-entity by meeting at least two of these thresholds:
- Turnover not more than £1 million
- Balance sheet total not more than £500,000
- Not more than 10 employees on average
If you are not sure whether you qualify, our guide on whether you are a micro-entity walks through the thresholds in detail.
What is different under FRS 105
Micro-entity accounts under FRS 105 are deliberately simple. You do not use fair value or revaluation, disclosures are minimal, and the accounts are presumed to give a true and fair view once the required items are included.
FRS 105 and the 2028 filing change
From April 2028 all companies, including micro-entities, must file their accounts using software rather than the free web form. Micro-entities will also need to file a profit and loss account, though you can choose not to publish it. Preparing under FRS 105 stays the same, but how you submit changes.