FRS102 – Upcoming Changes to UK Accounting Standard
What You Need to Know
The Financial Reporting Council (FRC) is updating FRS 102 — the UK’s main accounting standards to bring accounting practices closer to international and US accounting standards.
These changes apply to accounting periods starting on or after 1 January 2026.
What does this mean for you?
- Financial Reporting: Your reported revenue and profit may change
- Key Metrics: With leases now on the balance sheet, key metrics such as EBITDA will be affected and this may impact any loan agreements or how investors view your business
- Internal Systems: You may need to review your processes and in some cases, consider updating your accounting software
- Training: If you have one, your finance team will need to be familiar with the new rules and understand how this may affect your business
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