Looking to improve your financial reporting and prepare for FRS 102? Chris Smith shares clear and practical support to keep you informed and feeling ready for what’s ahead.
Grasping the application of UK GAAP (FRS 102) can be complex. With major updates from 1 January 2026, including changes to revenue recognition and lease accounting we’ve compiled financial reporting resources to help you understand and manage the impacts on your year-end reporting. We are currently working on a comprehensive update to our illustrative accounts to reflect the new requirements.
2025 hot topics
This flyer pulls together targeted information on significant updates and their potential effects. We discuss the accounting impact of macro-economic uncertainty and climate-related developments, tariffs, and hyperinflation. Looking ahead to 2026 we cover key FRS 102 updates, including changes to company size thresholds and removal of certain reporting requirements in the directors’ report. We also refer to changes to the directors’ remuneration report disclosures and amendments to IFRS 9, for those FRS 102 reporters that take this option, there's clarification of when a financial asset and a financial liability should be derecognised when using electronic payment systems. There's also a summary of the key FRC publications issued over the past year.
2024 Amendments to FRS 102 and illustrative accounts
The FY24 illustrative accounts apply the versions of FRS 102 and the Companies Act 2006 effective for the year ending 31 December 2024, and include early adoption of the new supplier finance arrangement disclosures (mandatory for periods starting on or after 1 January 2025).
The illustrative accounts are based on a fictional UK company: a large, privately-owned parent of a global group. We’ve made deliberate choices about the activities, transactions, and accounting policies to reflect a broad range of sectors and scenarios. While detailed, they’re not exhaustive and may not include all disclosures needed for all scenarios, so tailoring to your specific circumstances remains essential. We’ve exercised care in the production of these resources so they complement, but don’t replace the requirements of FRS 102 and company law. If you need support applying the standards to your own transactions, you should seek independent advice.
For more insight and guidance, get in touch with Chris Smith.
