Bitesize Insights · UK financial reporting
Your sales team agrees a bundled contract. Procurement renews an equipment agreement. Operations decides to keep a property for another five years.
Each decision could affect your accounts.
Most amendments from the FRS 102 Periodic Review 2024 apply to accounting periods beginning on or after 1 January 2026. The revised revenue and lease requirements make coordination across the business particularly important.
Who needs briefing?
Flag unusual contract terms
Bundled services, rebates, discounts and contract changes can affect how much revenue is recognised and when.
Give sales teams a clear route to finance before agreeing unfamiliar terms. They need to recognise the warning signs, without becoming accounting specialists.
Involve finance before signing
Most leases now require lessees to recognise an asset and liability, although exemptions are available for qualifying short-term and low-value asset leases.
Contract wording and the substance of the arrangement matter. An agreement described as a service could contain a lease.
Share the full picture
Finance needs more than a list of rent payments. Share equipment arrangements, contract amendments, break clauses and renewal options.
Explain the commercial plans behind those arrangements. Whether a location or asset remains essential can inform the accounting assessment.
Keep finance informed
Include finance when reviewing commissions, bonuses and share schemes. These arrangements can raise accounting questions under different sections of FRS 102, so avoid assuming they all follow the new revenue rules.
Your next step
Create a short checklist showing which decisions require finance review, who owns each contract and where supporting documents are stored.
The Consult EFC view
A successful transition depends on reliable information reaching finance early enough to act.
Read the FRC’s FRS 102 changes explainer and revenue recognition factsheet.
Not sure where your business stands right now?
Book a free 30-minute call with Kish. Bring your numbers, your questions, or just your situation. You will leave with a clearer picture than you arrived with.
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Over 12 years across Big Four audit, Investment Banking, and corporate advisory. Kish works with SaaS founders, tech companies, and ambitious UK SMEs from £1M to £50M in revenue on fundraising, valuations, exit planning, and financial strategy. ICAEW regulated. Big Four trained. Based in London.