UK
Ireland
Navigating FRS 102: Why project and change management are vital
UK businesses face a significant shift in how they account for revenue and leases under the revised FRS 102 that took effect from 1 January 2026. Many organisations are already considering how these changes will impact their accounting practices, it’s also imperative to focus on managing that change internally.
To help get you prepared, we’ve put together five simple steps that can make a big difference to the running of such a crucial change programme:
Step 1: Appoint a clear project lead and appropriate governance structure
The amendments could bring extensive changes to your finance function, even impacting how your business runs day-to-day. These could range from adjusting processes for revenue and lease accounting, to strengthening internal controls or upgrading finance systems to handle the new requirements.
With so much change happening simultaneously, clear leadership and strong governance is essential. Without them, even the best-intentioned project can drift off course.
Step 2: Conduct an impact assessment
Successfully implementing these changes is not just a technical accounting exercise; it is a cross-functional transformation. Changes could impact IT, procurement, operations and HR.
Having support through this process is a game changer to ensure a smooth transition – exactly what good project and change management achieves.
At its core, FRS 102 project management brings structure to complexity
Step 3: Build a realistic and structured implementation plan
Good project management ensures that everyone involved knows what needs to happen, when and who is responsible. In a change programme as wide reaching as FRS 102, this clarity is key, particularly as finance teams are typically juggling day-to-day responsibilities, while trying to implement and adapt to new processes and potentially new tools.
Without a good plan and someone leading the way it is easy for priorities to slip and for deadlines to be missed.
Step 4: Engage with stakeholders early
One of the biggest benefits of strong project management in an FRS 102 change programme will be connecting stakeholders across each department, ensuring that everyone is working towards the same goals.
Alignment in this way helps avoid duplication of effort and allows for decisions to be made with the larger vision in mind, whether around system updates, contract updates or new disclosures.
Change management makes change feel less like disruption and more like progress
Step 5: Prepare teams for the new normal
The changes will represent a fundamental shift in how finance teams operate, potentially bringing in new tools, revised workflows and updated reporting. While process and software changes may be key, it is the human side that often determines success.
That is where change management is key. It is about supporting businesses to move from the old way of working to the new. Without a clear plan to support that transition, even the most well organised change programme can fall flat.
One of the key outcomes of strong change management is employee engagement. When change is handled well, employees feel supported, and new ways of working are embraced quicker and become more embedded.
FRS 102 changes are more than a compliance update. They’re a catalyst for transformation
The changes to FRS 102 are expected to impact companies’ financial metrics, systems, disclosures, stakeholder relationships and more. These changes give businesses a real opportunity to modernise how they report financially, while also strengthening internal capabilities.
By treating the transition as a strategic project, supported by strong governance, project and change management, organisations can turn what might feel like a compliance headache into an opportunity to grow and improve.
Let’s make sure your organisation is ready – not just to comply, but to thrive
If you are preparing for a project of this scale and complexity and feel project and change management support could help, our expert practitioners are on hand to deliver what you need. Get in touch today.