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FRS 102

Everything you need to know ahead of the changes coming on 1 January 2026.

On 27 March 2024 the Financial Reporting Council (FRC) released The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review 2024 (FRS 102 (2024)).

Since 1 January 2026, FRS 102 underwent its most significant update since its introduction. These changes aim to align UK GAAP more closely with international standards, improving transparency and comparability.

By using this page, you’ll stay informed, reduce compliance risk, and ensure your financial reporting remains accurate and transparent. Whether you’re an SME or a larger organisation, these resources will help you navigate the changes confidently and turn compliance into an opportunity for better reporting.

Explore our detailed guides below to get practical advice and actionable steps for implementing the new FRS 102 requirements.

How we can help

At PEM, we understand the pressures these changes may bring—and we’re here to support you every step of the way. Our expert team can help you:

Assess the impact on your financial reporting and business operations
Update your accounting processes and systems
Prepare your team with the knowledge and tools they need to stay compliant

Let’s make sure your business is ready.

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Section 1A: Application to smaller entities

Our Section 1A: Application to smaller entities guide has been produced with those entities in mind and provides a summary of the changes applicable to smaller entities.

It also includes a summary of the reporting changes applicable to micro-entities applying FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime (2024).

Download our Section 1A: Application to smaller entities guide

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Section 23: Revenue

Our Section 23: Revenue guide provides a high level summary of the key changes in Section 23 (Revenue from Contracts with Customers) and highlights the new terminology and key factors that should be considered as you prepare for transition.

Download our Section 23: Revenue guide

Our FRS 102: Revenue – Disclosure and transition guide provides in depth analysis into the transitional arrangements and disclosure requirements of Section 23.

Download our FRS 102: Revenue – Disclosure and transition guide

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Section 20: Leases

Our Section 20: Leases guide provides a high level summary of the key changes in Sections 20 (Leases) and highlights the new terminology and key factors that should be considered as you prepare for transition.

Download our guide on Section 20: Leases

Our FRS 102: Leases – Disclosure and transition guide provides in depth analysis into the transitional arrangements and disclosure requirements of Section 20.

Download our FRS 102: Leases – Disclosure and transaction guide

FRS 102 and the SORP (2026)

Changes in FRS 102 are reflected in the drafting of the new charity SORP. Our webinar explores the impact on charities and non-profit entities of the changes in income recognition, the revisions to lease accounting and the practical implications when preparing for transition.

Watch this webinar