The Financial Reporting Council’s 2024 Periodic Review introduced major amendments to various elements of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Section 23 on Revenue is one area that has seen significant change as the old section has been wholly replaced with a new approach to revenue recognition that replaces the previous risks‑and‑rewards approach with one broadly aligned to the IFRS 15 “Revenue from Contracts with Customers”. The revised standard introduces a new five‑step revenue recognition framework, more prescriptive guidance throughout, and enhanced or clarified guidance on topics such as principal versus agent roles, variable consideration and contract balances.
The revised standard is effective for accounting periods beginning on or after 1 January 2026, with early adoption permitted.
