FRS 102 Revenue Recognition Readiness Checker
Assess whether revised FRS 102 Section 23 may affect your contracts, revenue recognition policy and accounting judgements before the 2026 implementation date.
Answer the questions
Areas to review before applying revised Section 23
The revised model can affect how companies analyse contracts, identify promises to customers and determine when revenue is recognised.
Bundled goods and services
Contracts that combine products, installation, support, maintenance or licences may require separate analysis of customer promises.
Variable consideration
Discounts, refunds, rebates, penalties, bonuses, success fees and milestone payments can affect the amount of revenue recognised.
Revenue over time
Long-term services, projects and subscriptions may require assessment of whether revenue should be recognised over time or at a point in time.
Principal versus agent
Marketplace, commission and reseller arrangements may need review to determine whether gross revenue or net commission is appropriate.
Contract changes
Renewals, scope changes and contract modifications may change the pattern or amount of revenue recognised.
Transition planning
Companies should identify affected contracts, document judgements and consider the impact on accounts, covenants and management reporting.
FRS 102 revenue recognition frequently asked questions
Helpful points to consider when assessing whether revised Section 23 could affect your contracts, policies and timing of revenue recognition.
What is changing in FRS 102 revenue recognition?
The revised Section 23 introduces a more comprehensive contract-based model for revenue from contracts with customers. Companies may need to reassess contracts, revenue policies and transition judgements.
When do the changes apply?
Most Periodic Review 2024 amendments are effective for accounting periods beginning on or after 1 January 2026, unless the company early adopts them.
Which companies are most likely to be affected?
Companies with bundled arrangements, long-term contracts, subscriptions, variable pricing, upfront fees, milestone billing, customer acceptance clauses or agent/principal judgements are more likely to need detailed review.
Should revenue be recognised when invoiced?
Not always. Invoices, cash receipts and revenue recognition can differ where services are delivered over time, fees are received upfront or contract obligations remain outstanding.
Can Accoura Advisors help with a review?
Yes. Accoura Advisors can introduce you to accounting specialists who can review FRS 102 revenue policies, contract terms and related financial statement implications.
Need a detailed FRS 102 revenue review?
If your score indicates moderate or high impact, a qualified specialist can help review customer contracts, revenue recognition policies, transition options and documentation before implementation.
Request specialist support