FRC Amends FRS 102 for Balance Sheet and Profit/Loss Accounts

FRC News

Published February 18th, 2026

Detected March 6th, 2026

Summary

The Financial Reporting Council (FRC) has issued amendments to FRS 102, effective for accounting periods beginning on or after January 1, 2027. These changes update the framework for companies adapting their balance sheet and profit and loss account formats, maintaining alignment with IFRS. Entities not adapting their formats will not be affected.

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What changed

The Financial Reporting Council (FRC) has issued amendments to FRS 102, which will affect companies that choose to adapt the presentation formats of their balance sheets and profit and loss accounts. These amendments, effective for accounting periods beginning on or after January 1, 2027, aim to maintain alignment with International Financial Reporting Standards (IFRS) following the introduction of IFRS 18. Companies that do not adapt their financial statement formats under FRS 102 will not be impacted by these changes.

Regulated entities that intend to adapt their financial statement formats should review the updated FRS 102 requirements. The FRC has also made limited clarifications to FRS 102 and FRS 105 related to the 'Periodic Review 2024 amendments'. While no specific compliance deadline is mentioned beyond the effective date for accounting periods, companies should prepare for these changes for periods commencing January 1, 2027.

What to do next

Review FRS 102 amendments for adapted financial statement formats.
Assess impact on financial reporting for periods beginning on or after January 1, 2027.
Consult accompanying Feedback Statement and Impact Assessment for further details.

Source document (simplified)

FRC maintains international alignment for companies applying adapted formats in financial statements

News types:

Published: 18 February 2026

The Financial Reporting Council (FRC) has today issued amendments to FRS 102 to provide companies with an updated framework when adapting the formats of their balance sheets and profit and loss accounts in their annual report and accounts.

These amendments support entities taking advantage of presentation options within company law and ensure the financial reporting framework remains fit for purpose and will continue to provide relevant information to users of financial statements. The amendments have been developed to maintain alignment with the presentation requirements of International Financial Reporting Standards (IFRS), following the introduction of IFRS 18 ‘Presentation and Disclosure in Financial Statements’.

Entities that do not choose to adapt their financial statement formats under FRS 102 [1] will not be impacted by these amendments.

The amendments follow consideration of stakeholder responses to the FRC’s proposals set out in FRED 87 [2], issued in July 2025, and are effective for accounting periods beginning on or after 1 January 2027.

At the same time, following feedback from stakeholders, the FRC has also made limited clarifications further to the ‘Periodic Review 2024 amendments’, relating to both FRS 102 and FRS105 [3].

Read the ‘Amendments to FRS 102 and FRS 105 – Adapted formats’

Read the accompanying Feedback Statement and Impact Assessment

Footnotes

[1] FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’
[2] FRED 87 ‘Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Adapted formats’
[3] FRS 105 ‘The Financial Reporting Standard applicable to the Microentities Regime’