FRS 102 Accounts

FRS 102 is the main UK accounting standard, used by most companies that are not micro-entities and do not report under IFRS. Small companies apply its Section 1A reduced disclosures; medium-sized and large companies apply it in full. From January 2026 the FRC's Periodic Review amendments bring a new five-step revenue model and put most leases on lessees' balance sheets — changes that can move your reported profit, EBITDA and gearing. We prepare fully compliant FRS 102 accounts and manage the transition so there are no surprises for your lenders or your board.

Who Uses FRS 102?

FRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland) applies to: - Small companies, using Section 1A reduced disclosures — for periods beginning on or after 6 April 2025, small means meeting two of: turnover £15 million or less, balance sheet £7.5 million or less, 50 or fewer employees - Medium-sized companies — up to £54 million turnover, £27 million balance sheet, 250 employees - Large companies above those limits - Groups preparing consolidated accounts under UK GAAP

Micro-entities can opt for the simpler FRS 105 instead, and some entities must or choose to use IFRS. We advise on the right framework as well as preparing the accounts.

The 2026 Changes: Revenue and Leases

The FRC's Periodic Review 2024 amendments take effect for periods beginning on or after 1 January 2026, with early adoption permitted: - Revenue: a new five-step model aligned with IFRS 15, recognising revenue as control of goods or services passes to the customer — this can change the timing of revenue for contracts, bundled services and milestones - Leases: lessees bring most leases onto the balance sheet as a right-of-use asset and lease liability, aligned with IFRS 16, with exemptions for short-term and low-value leases — rent expense becomes depreciation plus interest, changing EBITDA, gearing and potentially banking covenants

We model the impact before your first affected year end, restate comparatives correctly and brief your stakeholders early.

Our FRS 102 Services

- Full FRS 102 and Section 1A accounts preparation, including profit and loss account, balance sheet, cash flow statement and notes - Transition planning and impact assessments for the 2026 revenue and lease changes - Consolidated accounts for UK GAAP groups, including intercompany elimination and goodwill - Technical support on financial instruments, business combinations, employee benefits and deferred tax - iXBRL tagging, Companies House filing and corporation tax return alignment - Ongoing advice as standards and company size thresholds change

FRS 102 vs FRS 105

- FRS 102 serves everything from small companies (Section 1A) to large groups; FRS 105 is only for micro-entities - FRS 102 requires a cash flow statement (except for small companies using Section 1A); FRS 105 never does - FRS 102 permits revaluations and recognises deferred tax; FRS 105 prohibits revaluation and ignores deferred tax - FRS 105 accounts are quicker and cheaper but show lenders and investors far less

If you are near the micro-entity limits (£1 million turnover, £500,000 balance sheet, 10 employees for periods beginning on or after 6 April 2025), we will help you weigh simplicity against presentation.

What You Get With Acumon

• Full FRS 102 and Section 1A accounts preparation across all industries
• Impact assessments and transition support for the 2026 revenue and lease changes
• Consolidated accounts for UK GAAP groups
• Technical expertise on financial instruments, business combinations, leases and employee benefits
• iXBRL tagging and aligned corporation tax returns
• Deadline management so Companies House and HMRC filings are never late
• Framework advice: FRS 102, Section 1A, FRS 105 or IFRS

Why Acumon for FRS 102 Accounts?

• ICAEW-registered firm of chartered accountants
• UK-based team of 90+ staff across accounts, audit and tax
• Integrated tax expertise so accounts and CT600 always align
• Can provide fully qualified accountants and CFOs / Financial Directors for complex needs

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.