With the significant revisions to FRS 102 effective from 1 January 2026, we can’t stress enough how important it is for you and your clients to be prepared. To help you, we have prepared this summary which outlines where you should be now and what you need to do later in the year and how we will support you. There is also a link to download a free summary for you to share with your clients; both limited companies and charities.
What you should have already done
Triaged and risk assessed your clients to identify those who will face significant changes to their financial statements and those likely to see little change.
Informed your clients of the impact of the changes and the ripple effect throughout their business. They should be aware of and understand:
- financial statements may look different, with impacts in areas such as net current assets and key performance measures such as EBITDA;
- the need to engage with stakeholders, including the bank where the changes above are significant;
- the need to collect new data regarding leases and revenue contracts.
To help you remind your clients, or to make them aware of the above, we have prepared summaries for you to make your own and share with them.
What you need to do over the next few months
If you haven’t triaged your clients and had the necessary conversations with clients, it would be advisable to do this very soon. If you have done this, you might want to use the communication we have prepared as a reminder of what they need to be doing too.
What you should have already received from us
We have updated two main disclosure checklists; our FRS 102 Corporate Checklist and our FRS 102 Section 1A checklist for small companies. These were issued in February 2026. These are accessible via the Members’ Area of www.hatgroup.co.uk. If you have any problems accessing this, please contact Emily.
Relevant FRS 102 updates were also covered in the quarterly update courses over the last 12 months. These are still available to watch if you need to recap. If you do not subscribe to the updates, a copy of the notes are included with all memberships and recording of past updates can be provided. Any questions please contact Emily.
Ongoing FRS 102 support
We are pleased to provide an FRS 102 transition checklist which can be used on current assignments to ensure clients are ready for these changes. This can be accessed here.
An essential Charities Update course covered how the amendments to FRS 102 and the SORP will impact charities is now available to watch.
We have written FRS 102 (Amended) What You Need to Know which consolidates all the changes in a three hour CPD course, which can be accessed live or on demand. This can also be held inhouse, please contact Emily for further information.
We can also support you in providing presentations to your clients to understand the changes. Please contact Andrew for further details.
All audit methodologies will be updated by the end of this year. We are working closely with our technology partners Caseware and BrightWorkPapers (formerly MWP) to sure you have what you need on a timely basis.
2027 file reviews with support you in ensuring that you have satisfactorily addresses these changes. Please let us know if you would like to book in additional reviews of your first assignments under the revised standard.
FRS 102 brings about significant changes for you and your clients. We trust the above summary is useful to gauge where you are now and where you should be. We will continue to support you in the practical aspect to ensure compliance with the revisions. If you have any questions or concerns, please contact Andrew.
