The Financial Reporting Council (FRC) has confirmed that it plans to compete drafting of changes to FRS 102 and other financial reporting standards with a view to publishing the final amendments in the first half of 2024.

Any changes to accounting standards will affect an estimated 3.5 million companies reporting under FRS 102 and FRS 105 when they come into force on 1 January 2026.

On the plans for revenue recognition overhaul, the FRC confirmed that it was continuing to work towards a ‘five-step model’ for all FRS 102 and FRS 105 preparers.

Respondents to a consultation earlier this year called for ‘greater alignment with IFRS 15’, the revenue recognition standard for listed entities. However, there were concerns that the requirements could be too onerous for smaller businesses.

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