What is FRS 102?
FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, is the main accounting standard for companies in those two countries that do not report under full IFRS. It is issued by the Financial Reporting Council and used by most medium and large private companies, subsidiaries and many charities and small companies.
Also calledUK GAAPIrish GAAP
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- Issued by
- Financial Reporting Council
- Countries
- UK and Republic of Ireland
- Revenue and leases update
- Periods from 1 January 2026
How FRS 102 works
FRS 102 sits within a family of UK and Irish standards. Listed groups use IFRS. FRS 101 lets subsidiaries of IFRS groups use IFRS measurement with reduced disclosures. FRS 102 is a single standard based on the IFRS for SMEs, with a reduced-disclosure regime in Section 1A for small companies. FRS 105 is a simpler standard for micro-entities. The FRC's periodic review brought the largest change since FRS 102 began: for accounting periods beginning on or after 1 January 2026, a new Section 23 applies a five-step revenue model based on IFRS 15, and a new Section 20 puts most leases on the balance sheet as a right-of-use asset and lease liability, in line with IFRS 16, with exemptions for short-term and low-value leases. Accounts production software prepares FRS 102 statements from the trial balance.
Common questions
What is the difference between FRS 102 and IFRS?+
FRS 102 is shorter and simpler, with fewer disclosures and some different options, such as amortising goodwill. From 2026 its revenue and lease rules move much closer to IFRS 15 and IFRS 16.
What is FRS 102 Section 1A?+
The small entities regime within FRS 102. Small companies apply the same recognition and measurement rules but give far fewer disclosures in their accounts.
What changed in FRS 102 from 2026?+
A five-step revenue recognition model and a lease model that brings most leases on balance sheet, plus other updates, for accounting periods beginning on or after 1 January 2026.
Software used for FRS 102 accounts
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