The Financial Reporting Council (FRC) in the UK has approved changes to FRS 102, updating the rules that govern how companies may reshape the layout of their balance sheets and profit and loss accounts in their annual reports.
The updated standard aims to let entities use presentation options under company law while keeping the reporting framework relevant and informative for users.
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The update has been drafted to keep presentation requirements broadly aligned with International Financial Reporting Standards (IFRS), following the issue of IFRS 18, Presentation and Disclosure in Financial Statements.
Organisations that decide not to alter the format of their financial statements under FRS 102 will not be affected by these revisions.
The amendments follow the FRC’s review of responses from stakeholders to its proposals set out in FRED 87, published in July 2025. They will apply to financial periods beginning on or after 1 January 2027.
Alongside this, and again reflecting stakeholder input, the FRC has introduced limited clarifications arising from the Periodic Review 2024 amendments, which relate to both FRS 102 and FRS 105.
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By GlobalDataFRS 102 is a single accounting standard used for the financial statements of entities that are not applying adopted IFRS, FRS 101 or FRS 105.
It is aimed at general purpose financial statements and financial reporting for a broad range of entities, including those that are not companies and those that do not have a profit‑seeking objective.
The standard is based on the International Accounting Standards Board’s IFRS for SMEs [small and medium-sized enterprises] Accounting Standard, with significant adaptations for use in the UK and the Republic of Ireland.
