Corporate law update: 14 - 20 February 2026 - Macfarlanes

Amendments to FRS 102 published

On 18 February 2026 the FRC published amendments to FRS 102, which is the Financial Reporting Standard applicable in the UK and Republic of Ireland.

FRS 102 requires all entities to follow the presentation requirements for the balance sheet and the profit and loss account set out in UK company law (or the corresponding requirements in Republic of Ireland company law).

Entities may choose to adapt the detailed formats of the profit and loss account, and FRS 102 sets out the requirements that must be followed when the adapted format option is applied. These requirements are based on the International Accounting Standards Board’s (IASB) International Financial Reporting Standards (IFRS) for SMEs Accounting Standard, in particular IAS 1 (Presentation of Financial Statements).

In April 2024, the IASB published IFRS 18 (Presentation and Disclosure in Financial Statements), which replaced IAS 1. It was necessary therefore to make amendments to FRS 102 to reflect the replacement of IAS 1 with IFRS 18.

amend the presentation requirements for entities choosing to apply the adapted format of the balance sheet and/or one of the profit and loss account formats.

amend the definitions of current asset, non-current asset and current liability, and include guidance on applying these updated definitions.

Minor amendments to FRS 105 (The Financial Reporting Standard applicable to the Micro-entities regime) have also been published.

Read the FRC’s Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime (opens PDF)

The Financial Conduct Authority (FCA) is consulting on reforms to the UK securitisation framework. It is proposing to make the securitisation rules more proportionate and flexible for institutional investors and manufacturers. The proposals include removing prescriptive elements from the due diligence rules regarding disclosure information, credit granting and risk retention, as well as a proposal to cease treating public and private securitisations differently under certain transparency rules. The consultation closes on 18 May 2026.

Read the FCA Consultation Paper on the Rules for reforming the UK Securitisation Framework