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FRS 102 Services For Businesses Facing Reporting Change

Finance Directors and directors preparing accounts under FRS 102 are entering a period where some familiar reporting treatments may need closer review.

The 2026 changes are not just a technical update for the accounts file. They can affect revenue recognition, lease accounting, fair value measurement, disclosures, audit evidence, tax considerations and how results are explained to boards, lenders or investors.

Accendo provides FRS 102 services for established SMEs, owner-managed companies, groups, charities and organisations preparing accounts under UK GAAP. We support clients where the accounts need to be accurate, supported and understood by the people relying on them.

We are London-based chartered accountants supporting businesses and organisations across the UK. Our role is to help management identify where FRS 102 matters, what needs to be reviewed and how to prepare before year-end pressure begins.

Support for the 2026 FRS 102 changes

The Periodic Review 2024 amendments to FRS 102 are effective for accounting periods beginning on or after 1 January 2026.

For many organisations, three areas are likely to need particular attention:

1.  The revised Section 23 revenue model.

2.  The revised Section 20 lease accounting requirements.

3.  The new Section 2A fair value measurement guidance.

The impact will vary. A company with straightforward revenue and few leases may see limited change. A group with multi-element contracts, property leases, equipment leases, investment assets or external reporting pressures may need a more detailed review.

Accendo helps clients assess where the changes affect the accounts, what information needs to be gathered and what judgements should be documented.

FRS 102 reporting with stronger evidence

FRS 102 can involve important accounting judgements. These may relate to revenue, leases, financial instruments, related-party transactions, deferred tax, group structures, fair value measurement or disclosures.

As organisations grow, these areas often become more significant. Contracts may become more complex. Property and equipment leases may increase. Group reporting may become more involved. Audit requests may require stronger evidence behind accounting treatments.

Where the work connects with audit, preparing early can reduce late questions and help management explain the reporting position more effectively.

Practical FRS 102 services for UK organisations

Our FRS 102 services may include preparing statutory financial statements, reviewing accounting policies, considering disclosure requirements and assessing the impact of updated requirements.

The work may also connect with tax, particularly where accounting treatments affect Corporation Tax, timing differences, deferred tax or reported profit.

For groups, FRS 102 work may link to accounts where consolidation, intercompany balances, goodwill, fair value adjustments or subsidiary reporting need review.

The focus is not on overcomplicating the accounts. It is on making sure the position has been properly considered before the accounts are finalised.

Preparing before the timetable tightens

FRS 102 issues are easier to deal with before the year-end accounts or audit process begins.

Accendo can help identify relevant contracts, leases, fair value matters, disclosures, intercompany balances and supporting records early. This is especially useful for growing companies, groups, charities, audit clients and businesses preparing for funding, investment or sale.

For organisations that need more regular reporting alongside statutory accounts, CFO support can also help strengthen management information and board-level reporting.

If the 2026 FRS 102 changes may affect your accounts, Accendo can help you assess the impact and prepare the evidence before deadlines create pressure.

Frequently Asked Questions

FRS 102 services help organisations prepare, review and explain accounts under FRS 102, the main UK accounting standard used by many entities reporting under UK GAAP.

Accendo’s FRS 102 services may include financial statement preparation, accounting policy review, disclosure review, audit preparation and assessment of areas requiring judgement.

This support is particularly useful where an organisation has leases, more complex revenue arrangements, group structures, financial instruments, related-party transactions, fair value matters or audit requirements.

The aim is to help directors, trustees and finance leaders understand the reporting position and prepare accounts that are accurate, supported and capable of being explained.

FRS 102 services may be needed by companies, groups, charities and other organisations preparing accounts under UK GAAP.

The need often becomes clearer as the organisation grows. Additional entities, lender reporting, audit requirements, more detailed disclosures, new contracts or changing accounting standards can make year-end reporting more involved.

Directors and finance leaders may need FRS 102 support where they are unsure how a transaction should be treated, whether disclosures are complete or how the 2026 changes affect the accounts.

Accendo works with established SMEs, owner-managed businesses, subsidiaries, groups, charities and organisations across the UK.

Accendo can help management understand how the 2026 FRS 102 changes may affect the accounts before year-end work becomes pressured.

The key areas to review include the revised Section 23 revenue model, revised Section 20 lease accounting and new Section 2A fair value measurement.

These changes may affect how revenue is recognised, how leases are brought into the accounts and how fair value measurements are assessed and disclosed.

The impact will not be the same for every organisation. Accendo can help identify which changes are relevant, what information should be gathered and what judgements need to be documented before accounts preparation or audit fieldwork begins.

The revised Section 23 introduces a revenue model based on identifying promises to transfer goods or services to customers and recognising revenue as those promises are satisfied.

For businesses with straightforward sales, the impact may be limited. For businesses with contracts that include bundled goods, services, milestones, support, licences or longer-term delivery, the accounting may need more review.

Finance teams may need to examine contract terms, promises to transfer distinct goods or services, timing of delivery and whether revenue recognition still reflects the commercial substance of the arrangement.

Accendo can help businesses assess where the revised revenue model matters and prepare supporting evidence for the accounting treatment used.

The revised Section 20 changes lease accounting for many lessees by bringing more lease arrangements onto the balance sheet.

This may affect businesses and charities with property leases, equipment leases, vehicles or other arrangements that give the right to use an asset for a period of time.

The practical work may include identifying lease arrangements, gathering lease terms, reviewing payments, considering available exemptions and understanding the effect on the balance sheet and reported results.

This can also affect audit evidence, lender discussions, management reporting and board explanations. Accendo can help organisations review lease arrangements early so the accounts process is not delayed.

New Section 2A brings fair value measurement guidance into FRS 102 in a more structured way.

Fair value may be relevant to areas such as investment properties, certain financial instruments, business combinations or other assets and liabilities measured at fair value.

The issue for management is not only the number used. It is whether the basis of measurement is appropriate, whether assumptions are supported and whether disclosures are clear.

For businesses and groups with fair value matters, Accendo can help review the information available, identify where judgement is involved and prepare evidence before the accounts are finalised.

Yes. FRS 102 services can support audit, group accounts and funding preparation because the accounting treatments often affect the information reviewed by auditors, lenders, investors and buyers.

For audit clients, accounting policies and supporting schedules need to be ready before fieldwork. For groups, FRS 102 may affect consolidation, goodwill, deferred tax, financial instruments, intercompany balances and disclosures. For funding or sale preparation, stakeholders may examine whether the accounts are consistent, reliable and well supported.

Accendo helps clients review these matters early. Preparation does not guarantee audit, funding or transaction outcomes, but it can reduce late questions and improve the quality of financial reporting discussions.

Accendo provides FRS 102 services for established SMEs, owner-managed businesses, subsidiaries, groups, charities and organisations that need senior accountancy support.

Clients may need help with statutory accounts, audit preparation, group accounts, charity reporting, Corporation Tax alignment, accounting policy review or the 2026 FRS 102 changes.

Accendo is London-based but supports clients across the UK, so the service is not limited to London-only businesses.

If your organisation is preparing for the 2026 FRS 102 changes, or needs stronger support around revenue, leases, fair value or year-end reporting, Accendo can help you get the position assessed and documented before the accounts timetable becomes pressured.

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