The upcoming FRS 102 changes are more than a technical update. They will influence how your performance is reported, how investors interpret your results, and how efficiently your audit runs. For established and fast-growth companies, preparation is not optional, it is essential to protect compliance, reputation and investor confidence.
Key Changes to Know
Revenue recognition: The timing and method of recognising revenue will change for some businesses, potentially affecting reported results and performance indicators. Companies with long-term contracts, staged payments or performance-based revenue should pay close attention.
Lease accounting: More leases will now appear on the balance sheet as both an asset and a liability. This can impact gearing ratios, covenants and investor perceptions.
Disclosures: Greater clarity and detail will be required in accounting policies, assumptions and commitments. Investors and auditors will expect clear, consistent explanations.
Risks of Delay
Waiting until year-end risks:
- Restating prior periods
- Increased audit scrutiny and delays
- Missed Companies House deadlines and late-filing penalties
- Misalignment with HMRC reporting requirements for mileage and advisory fuel rates
Immediate Priorities
- Review and align accounting policies, especially around revenue and leases.
- Update annual report templates and internal reporting tools.
- Engage auditors early with updated disclosures and reconciliations.
- Schedule Companies House filings well in advance.
Where Outsourced Accountants Add Value
Many high-growth companies lack the in-house bandwidth or technical expertise to manage these changes effectively. Outsourced accounting partners can:
- Interpret the new standards and apply them to your business context.
- Redesign financial statement layouts to meet disclosure requirements.
- Strengthen internal controls for ongoing compliance.
- Train your finance team to apply the changes correctly.
- Liaise directly with auditors to avoid unnecessary queries.
- Oversee filing deadlines and HMRC obligations, preventing penalties.
Why It Matters
For your audit: Up-to-date disclosures and reconciliations make the process faster and less disruptive.
For investors: Transparent, compliant reporting builds trust and confidence in your governance.
For your finance team: Robust processes reduce year-end stress, freeing capacity for strategic work.
Next Steps
- Assign clear ownership for managing FRS 102 readiness.
- Book an early planning session with your auditors.
- Review all policies, especially on revenue and leases.
- Consider engaging specialist outsourced support for technical and compliance-heavy areas.
Act now and you will not only meet the new standards but also demonstrate the financial discipline that investors, regulators and boards expect from ambitious, fast-growth companies.
Reach out to one of our team today, and let’s talk.
