Can a company use FRS 105 if it is part of a small group which contains companies reporting under FRS 102?

Question

I have a group of companies – one company has prepared accounts under FRS 102 and lodged them with the CRO for the financial year. Other companies in the group are much smaller and could report under FRS 105. Is it possible to report some companies in a group under FRS 102 and others under FRS 105? – is this possible – it would just mean less information filed with CRO for the smaller companies which the client might prefer.

This is a small group and no consolidated accounts are not being prepared .

Answer

As long as the group is considered a small group in S.280B CA 2014 (and no ineligible entities in it) and the respective requirements of the micro companies regime etc. are met for the relevant company (2 out of 3- <€700k turnover, < €350k gross assets, <10 employees), then it is possible for any entity in the group to apply FRS 105 (regardless of whether another entity uses FRS 102).

One thing to be careful off though is if the group as a whole is close to the medium size limits then it may not be practical to use FRS 105 as these companies would have to transition to FRS 102 when group accounts are required.