FRS 102: Transition and compliance support

Helping you apply the revised reporting framework with confidence

Major changes to FRS 102 are now in effect. Following the Financial Reporting Council’s 2024 Periodic Review, new requirements apply.

For accounting periods beginning on or after 1 January 2026, the revised standard affects how you plan, report and make decisions.

The revised FRS 102 standard brings in updated rules for revenue recognition, lease accounting and financial statement presentation. These changes will likely have a material impact on reported profits, tax, audit scope and key performance metrics.

We help you implement the changes smoothly, ensure compliance and understand what it means for your organisations.

How we support you

We work with companies across all sectors to manage the transition to the revised FRS 102 standard. Our team provides practical, joined-up support across accounting, tax and audit.

We can help you:

• Assess how the revised framework affects your financial statements.
• Review and update accounting policies, estimates and disclosures.
• Analyse contracts to apply the new revenue and lease rules.
• Calculate the impact at the transition date and support retrospective restatements.
• Plan for impacts on KPIs, dividends, tax and bonus arrangements.
• Review audit implications, especially under new company size thresholds.
• Upskill your finance team through tailored FRS 102 training.

Whether you need guidance on a specific technical issue or a full implementation plan, we support you at every stage.

What’s changed under FRS 102?

The revised standard introduces significant updates in several key areas:

• Presentation and classification of financial information has changed.
• Additional disclosures are required, including for key judgements and estimates.
• New company size thresholds apply from April 2025, which may change your audit obligations.
• Revenue recognition now aligns more closely with IFRS 15.
• Lease accounting introduces new recognition and measurement rules similar to IFRS 16.

Read our full insight on the key changes to FRS 102.

Why Moore Kingston Smith?

We combine technical expertise with commercial understanding. Our financial reporting specialists work closely with our tax and audit teams to provide integrated, business-focused advice.

We’re already supporting a wide range of businesses with the FRS 102 transition, from one-off technical reviews to full implementation programmes.