Desktop Banner

Mobile Banner

Preparing for change: countdown to January 2026

The upcoming changes to FRS 102, which include a new revenue recognition model and the introduction of on-balance sheet accounting for significant leases, will come into effect on 1 January 2026. What should your business be doing this year to prepare for change?

Project planning

To ensure your business is prepared for the changes in UK GAAP, it’s important to start early. We recommend creating a project plan that includes:

GAAP impact assessment

A comprehensive GAAP analysis should be conducted to identify how each line item in your financial statements is affected by the amendments. This analysis should include:

Leases

Having identified any leases that need to be brought on balance sheet, lease documentation will need to be collated and analysed, including:

Processes and controls

Processes and controls will need to be established to ensure:

Are there broader business implications?

The amendments may have broader implications for your business, including:

The wider business implications should be identified, along with the steps to manage the impact, such as renegotiating covenants or updating relevant agreements/contracts.

We strongly recommend early preparation to ensure that your business is ready for the changes in UK GAAP. We would like to understand how ready you are for the amendments and how you think they will impact your business.

Please complete our short survey

How we can help you prepare for the changes

Our team of accounting and financial reporting experts are here to support your business with the changes, including:

Please get in touch with Danielle Stewart OBE, Andy Ka, or your usual RSM contact to discuss how we can help your business prepare for the changes to UK GAAP.

authors:danielle-stewart-obe,authors:andy-ka