Home›Tools›FRS 102 2026 Changes Impact Checker

FRS 102 2026 Changes Impact Checker

Identify which Periodic Review 2024 changes are likely to affect the entity and turn the result into a prioritised implementation plan.

Scope and limitation: This diagnostic covers the principal changes most likely to require practical action for entities applying FRS 102 Section 1A or full FRS 102. It is not an exhaustive review of the amended standard, formal accounting advice or a compliance conclusion.
Setup

Set the reporting context

The accounting-period start date determines whether the principal amendments are mandatory. Supplier finance is assessed separately because its disclosures have an earlier effective date. A separate adapted-format question appears for periods beginning in 2027 or later.

Use the start date, not the year end.
Which version of FRS 102 does the entity use?
Headline changes

Leases, revenue and fair value

These areas are expected to create the most significant practical work for many preparers, but the effect depends on the entity's contracts and balances.

Does the entity have lease arrangements?Consider offices, vehicles, machinery, equipment and contracts that may contain the right to use an asset.
Does the entity earn revenue from contracts with customers?
Does the entity measure significant assets or liabilities at fair value?Examples include investment property, financial instruments and certain acquisition balances.
Other areas

Identify other relevant changes

Answer at a high level. Selecting Unsure creates a review action rather than treating the area as not applicable.

Material going-concern uncertainty, losses, liquidity pressure or support dependence?
Uncertain corporation tax or other income-tax positions?
Share-based payment arrangements?
A business combination or acquisition relevant to this reporting period?
Material or complex financial instruments?Examples include derivatives, hedging, significant loans, non-basic instruments or unusual financing.
Supplier finance or reverse-factoring arrangements?Consider arrangements where a finance provider pays suppliers and the entity settles later.
Specialised activities covered by Section 34?Examples include agriculture, extractive activities, service concessions, heritage assets and public-benefit activities.

Private by design: the assessment runs entirely in this browser. Answers are not saved, transmitted or included in analytics. Analytics can record only generic tool-start, completion and related-tool events when consent has been granted.
FRS 102 changes from 2026

What changed in FRS 102 from 2026?

Most Periodic Review 2024 amendments apply to accounting periods beginning on or after 1 January 2026, with permitted early application subject to the standard's conditions.

Revised Section 20 Leases

Most lessee leases move to an on-balance-sheet model using right-of-use assets and lease liabilities, subject to recognition exemptions for qualifying short-term and low-value leases.

Rewritten Section 23 Revenue

A single five-step model now applies to revenue from contracts with customers. Whether the timing or amount changes depends on the entity's contracts and business model.

New Section 2A Fair Value

The definition and measurement guidance have been revised, including valuation techniques and the treatment of liabilities, non-performance risk and bid-ask spreads.

Section 1A disclosures

Recognition and measurement requirements continue to apply where relevant, and specified disclosures for UK small entities have been added or clarified.

Other targeted amendments

The review also includes uncertain tax treatments, going concern, financial instruments, business combinations, specialised activities and other incremental improvements.

Different effective dates

Supplier-finance disclosures apply from periods beginning on or after 1 January 2025. For periods beginning on or after 1 January 2027, the checker separately assesses the presentation amendments for entities choosing adapted statutory formats.

Practical questions

Which changes are likely to have the biggest impact?

Leases and revenue

These changes are likely to require the most implementation work for many preparers, especially where there are material operating leases or complex customer contracts.

Does every company need to change its accounting?

No. The significance depends on the entity's transactions, contracts and circumstances. Every affected entity should still review the amendments and update its documented conclusion.

Do the changes apply to Section 1A?

Yes, recognition and measurement requirements apply where relevant to a Section 1A entity. The amendments also update specified small-entity disclosures.

Does the checker support 2027 periods?

Yes. For periods beginning in 2027 or later, it asks whether the entity formally chooses an adapted statutory balance sheet and/or profit and loss account format, then assesses the separate presentation amendments where relevant.

How does the checker work?

It screens the principal practical areas, classifies the likely impact without a fake numerical score, and generates a tailored action plan and transition summary.

Technical sources

Authoritative FRC material used

The result wording is independently written. The current standard and FRC publications remain authoritative.

FRC: current FRS 102September 2024 edition and subsequent amendments.Periodic Review 2024 amendmentsEffective dates, transition and detailed amendments.FRC June 2026 explainerSummary for users of financial statements.FRC factsheetsImplementation material including Factsheets 4, 6, 9, 10, 11 and 12B.FRC adapted-format amendmentsSeparate changes effective from 1 January 2027.FRC Factsheet 12BPresentation options and requirements for periods beginning on or after 1 January 2027.

Technical content reviewed against FRC material available on 23 August 2026.

FAQs

Using the 2026 impact checker

Does this confirm that the entity complies with amended FRS 102?

No. It is an implementation diagnostic. Compliance depends on the complete amended standard, materiality, company law, the entity's full circumstances and professional judgement.

Why does the accounting-period start date matter?

The principal amendments generally apply to periods beginning on or after 1 January 2026. A period ending in 2026 is not enough if it began before that date and the amendments were not early adopted.

Why is supplier finance shown separately?

The Section 7 supplier-finance disclosures have an earlier effective date of 1 January 2025. The checker therefore does not describe them as a new 2026 requirement.

Are there further FRS 102 changes from 1 January 2027?

Yes. Separate amendments apply for periods beginning on or after 1 January 2027 to entities choosing adapted balance sheet and/or profit and loss account formats. Entities that do not choose adapted formats are not affected by those presentation amendments.

Are any answers saved or transmitted?

No. The checker runs client-side and does not persist or transmit the answers. Consent-aware analytics use only generic event names and a broad result category.

Need help implementing the FRS 102 changes?

Accoura Advisors can introduce you to a suitable qualified specialist for transition planning, complex contracts, lease implementation or financial-statement review.

Request specialist supportOpen the disclosure checker