FRS 102: Resource hub
Your essential guide to managing the changes to FRS 102
The FRS 102 is the Financial Reporting Standard used to prepare general-purpose financial statements in the UK and Republic of Ireland. It outlines how businesses should measure, recognise, and disclose financial transactions. It’s subject to a periodic review approximately every five years.
Significant changes to FRS 102 are now in force, impacting small and medium-sized enterprises, large, privately-owned companies and not-for-profit organisations and charities.
The 2026 updates introduce the most significant changes to UK accounting standards in more than a decade. The new rules affect revenue recognition, lease accounting and financial disclosures.
Here we bring together the latest guidance, sector insights, and events to help you understand what’s changed, how to comply, and what the new standards mean for your business, reporting, KPIs and future planning.
Watch our FRS 102: Beyond compliance webinar to gain practical, expert-led insight into the changes and what they mean for your organisation.
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Graham Gardner CA(SA)
Audit Partner (Head of Audit Quality)
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Emily Baldwin FCCA
Accounts Director and Head of the Financial Reporting Team (FRT)
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Changes to your accounts: FRS 102 and the impact on businesses
The 2026 updates to FRS 102 introduce the most significant changes to UK accounting standards in more than a decade.
With new rules affecting revenue recognition, lease accounting and financial disclosures, businesses should understand how the changes could impact their reporting, KPIs and future planning.
What creative, media and technology businesses need to know
The 2026 changes to FRS 102 will have important implications for businesses in the creative, media and technology sector.
New rules on revenue recognition and lease accounting could affect how contracts are assessed, when income is reported and how key financial metrics are presented. Understanding the sector-specific impact now can help businesses prepare for a smoother transition.
What professional services firms need to know
The 2026 changes to FRS 102 could significantly affect professional services firms.
New revenue recognition rules will place greater focus on engagement terms, variable fee arrangements and the timing of income recognition. Firms that review their contracts, systems and processes early will be better prepared for the transition and its impact on profits and reporting.
What manufacturing businesses need to know
The 2026 changes to FRS 102 will have important implications for manufacturing businesses.
New rules on lease accounting and revenue recognition could affect how assets, liabilities and contract income are reported, with potential knock-on effects for KPIs, banking covenants and financial planning. Taking action now can help businesses prepare for a smooth transition.
What academy Trusts need to know
The upcoming changes to FRS 102 and the revised Charities SORP will have important implications for academy trusts.
New requirements affecting leases, income recognition and trustees’ reporting could change how trusts present their finances and demonstrate impact. Early planning will help finance teams and trustees prepare for a smooth transition.
What charities need to know
The introduction of the revised Charities SORP 2026, updated financial thresholds and a refreshed Charity Governance Code marks a significant period of change for the charity sector.
New requirements affecting financial reporting, trustees’ annual reports and governance will impact charities of all sizes. Understanding what’s changing now can help trustees and finance teams prepare with confidence.
Frequently asked questions about FRS 102
From lease accounting to revenue recognition, the revised FRS 102 standard will affect how many organisations prepare and present their financial information. These FAQs provide clear answers to the questions businesses are most commonly asking as they prepare for the new rules.
The 2026 updates to FRS 102 introduce the most significant changes to UK accounting standards in more than a decade. The key areas affected are revenue recognition, lease accounting and financial disclosures, which could impact financial statements, key performance indicators, business reporting and future planning.
The principal effective date for the latest FRS 102 amendments is for accounting periods beginning on or after 1 January 2026. Businesses should assess the impact of the changes before the effective date to allow sufficient time for planning, implementation and stakeholder communication.
The changes will affect businesses applying FRS 102 across a wide range of sectors, including real estate, manufacturing, professional services, creative, media and technology businesses, charities and academy trusts. The impact will vary depending on an organisation’s contracts, leases, reporting requirements and financial structure.
The revised revenue recognition requirements may change how businesses assess contracts and determine when income should be recognised. Organisations with complex contracts, variable fees or long-term projects may need to review existing accounting policies, systems and processes to ensure compliance with the new requirements
The 2026 changes introduce new lease accounting requirements that could affect how lease commitments, assets and liabilities are reported in financial statements. Businesses should assess existing lease arrangements to understand the potential impact on reported financial performance, balance sheets and key performance indicators.
Early preparation gives businesses time to understand how the new requirements affect financial reporting, internal systems, key performance indicators and decision-making. Reviewing contracts, leases and reporting processes ahead of implementation can help avoid disruption and support a smoother transition to the revised standard.
The revised standard introduces new disclosure requirements alongside changes to revenue recognition and lease accounting. Businesses may need to collect additional information, review reporting processes and consider how the changes affect the presentation of financial information to stakeholders and decision-makers.
Finance teams should assess how the new requirements will affect their organisation, review existing accounting policies, identify data and system requirements, and evaluate the impact on financial statements and KPIs. Organisations can also access additional guidance through the FRS 102 resource hub to support their preparation.
The impact varies by sector. For example, real estate businesses may see changes affecting property assets and lease commitments, while professional services firms may need to review engagement terms and revenue recognition. Manufacturing businesses may experience changes to the reporting of lease-related assets, liabilities and contract income.
Businesses can access guidance, sector-specific insights, webinars and practical information through the FRS 102 resource hub. Resources are available for a range of sectors and focus on understanding what has changed, how to comply and what the revised standard means for financial reporting and strategic decision-making.