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HMRC internal manual

Corporate Finance Manual

Accounting for corporate finance: derivative contracts: FRS 13 disclosure requirements: what is and is not covered

Which financial instruments are covered by FRS13?

The FRS13 disclosure standard applies to all financial assets and liabilities, except those listed below.

Financial instruments not covered by FRS 13?

Various items falling within the definition of a financial instrument are nevertheless excluded from the FRS13 disclosure requirements. These fall into two groups:

  1. Items covered by other accounting standards or statutory provisions, including:
  • subsidiaries and quasi-subsidiaries
  • associated companies, partnerships and joint ventures
  • employee share options and similar schemes
  • pensions obligations
  • operating leases - finance leases are therefore included
  • equity shares of the reporting entity (including warrants and options thereover) except those held exclusively for resale, and
  • insurance companies’ and groups’ financial assets, financial liabilities and cash-settled commodities contracts.
  1. ‘Short-term debtors and creditors’ items for non-financial institutions may be omitted if:
  • they would be included in one of the following headings in the balance sheet formats prescribed by Schedule 4, Companies Act 1985, being:



  • debtors;
  • Prepayments and accrued income;
  • Creditors: amounts falling due within one year, other than items that would be included under the ‘debenture loans’ and ‘bank loans and overdrafts’ sub-heading;
  • Provisions for liabilities and charges
  • Accruals and deferred income; and


  • they are payable with 12 months of the balance sheet date, and
  • they are not derivatives.