We detail a summary of key amendments arising from the FRS 102 periodic review, with major changes to revenue recognition and leases.
03 Jul 2025
The changes will likely impact major sectors including retail, real estate, construction, professional services, manufacturing, hospitality, leisure and many more.
The periodic review also introduced changes to FRSs, notably to FRS 102, including key amendments to Section 1A Small entities and similarly to FRS 105.
Key highlights:
Small entities (Section 1A): Enhanced disclosure requirements now apply, including mandatory going concern disclosures and expanded related party transaction reporting
Leases (Section 20): Lessees must now recognise most leases on the balance sheet, introducing right-of-use assets and lease liabilities, similar to IFRS 16. This change will impact financial metrics like EBITDA and gearing
Revenue (Section 23): A new five-step model for revenue recognition replaces the previous risks-and-rewards approach, aligning with IFRS 15. This may alter the timing and profile of revenue recognition
Download the guide to gain a comprehensive oversight of the most substantial overhaul of FRS 102 since its inception.
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For more information on how S&W can support you through the FRS 102 transition, please contact Dominic Longley, Partner in Accounting Advisory.
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