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. [1]

    FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’
  2. [2]

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

    FRS 105 ‘The Financial Reporting Standard applicable to the Microentities Regime’