What is FRS 105?

By Ben Davies · Updated 1 June 2026

FRS 105 is the UK financial reporting standard for micro-entities — the smallest companies. It sets out how a micro-entity prepares its accounts, and it is deliberately the simplest of the UK standards.

Its full name is FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime. The key things it does:

• Strips the accounts back to a short balance sheet and a simple profit and loss account, with very few notes.
• Removes most of the judgement and disclosure that larger standards require — for example, it doesn't allow assets to be revalued or held at fair value.
• Lets the accounts be presumed to give a "true and fair view" if they include the legally required minimum.

How it relates to FRS 102

FRS 102 is the standard one tier up, used by small companies and larger ones. FRS 105 is essentially a cut-down version for micro-entities. (In filing terms, accounts under both are commonly tagged using the same FRC taxonomy family — the FRC also publishes a dedicated FRS 105 taxonomy; what changes is how much detail they contain.)

For a non-trading company — say one repaying a Bounce Back Loan — FRS 105 is the natural fit: a short balance sheet showing the loan, nothing more. See what micro-entity accounts contain.