This is the seventh in a series of exclusive articles offering practical guidance for practitioners and finance teams preparing for their first set of financial statements under revised UK GAAP (effective for periods beginning on or after 1 January 2026).

Transition elections are the decisions that determine how the move to the revised standard is reflected in the financial statements.

Most cannot be revisited once made, and several have material consequences for the balance sheet, profit and loss, tax position, and covenant headroom. Working through them now – deliberately, with auditors sighted – is far preferable to being pressed into decisions at year-end.