FRS 102 has changed – How is your business affected?

The arrival of the most significant revision to UK GAAP has left business owners reviewing records to determine whether they are still compliant.

Accounting periods that start on or after 1 January 2026 must be managed in alignment with the new FRS 102 rules on revenue recognition and lease accounting.

If your business prepares accounts under UK GAAP, these changes apply to you.

Additional changes are set to take effect from 1 January 2027, focusing on financial statement presentation.

No matter the size of your business, if you are affected by the changes, then it is imperative that you are fully compliant now.

To help, we have prepared a useful guide outlining the changes to:

  • Revenue recognition
  • Lease accounting
  • Fair value measurement
  • And more
Latest guidance for employers a blog article from Prime Accountants

How we can help

Our team advises businesses of all sizes on the full range of FRS 102 changes.

We can help you with:

Revenue recognition

Reviewing your contracts against the new five-step model

Lease accounting

Identifying your lease portfolio, calculating right-of-use assets and assessing balance sheet impact

Fair value measurement

Applying the updated guidance to your valuations and disclosures

Supplier finance disclosures

Ensuring you are meeting the transparency requirements already in force

Company size classification

Confirming how the updated thresholds affect your obligations

2027 presentation changes

Preparing your financial statement formats for the next round of amendments

We will work with you to ensure that you are fully aware of the impact the changes will have on your business and will help to update your policies and procedures to accommodate the new rules.

Our team will show you how to prepare financial statements and manage the technical details so you can be confident that nothing is overlooked.

Speak to our team today to take the stress out of FRS 102 preparations.