News alert / UK and Ireland accounting standards are revised

03 April 2024

The Financial Reporting Council (FRC) has issued comprehensive amendments to FRS 102 The financial reporting standard applicable in the UK and Republic of Ireland. The new standard has a principal effective date of 1 January 2026, but the new disclosures about supplier finance arrangements are effective from 1 January 2025. The main changes relate to accounting for leases and revenue recognition from contracts with customers. These changes will align generally accepted accounting practice in the UK (UK GAAP), in the most part, with the requirements of IFRS 16 and IFRS 15. Other changes have also been made to FRS 102 to make the requirements easier for preparers to understand and apply consistently. Generally, the changes move towards closer alignment with IFRS reporting requirements.