FRS 102 changed on 1 January 2026, what it means for your UK company's accounts

Most UK small and micro companies prepare their statutory accounts under FRS 102 (or FRS 105 for the smallest). On 1 January 2026, a revised version of FRS 102 came into force, and it changes what small companies have to disclose in their accounts. If your UK company files accounts, and almost every active one does, this affects the documents we prepare and file on your behalf.

The headline change is more disclosure for small entities reporting under Section 1A of FRS 102. Two areas in particular now require clearer reporting: dividends and related-party transactions. If your company has paid dividends to you as a shareholder, or has transacted with parties connected to you, another company you own, a family member, a director's loan, these now need to be disclosed more fully in the accounts. The goal, from the regulator's side, is transparency; the effect, for directors, is that the accounts tell a fuller story.

Why does this matter specifically for Gulf directors? Because the two most common structures we see, a holding company that pays dividends upward, and a director who draws money through a mix of dividends and loans, are exactly the arrangements these new disclosures target. It doesn't mean you owe more tax. It means the accounts must accurately describe what happened, and getting that description right requires an accountant who understands both the new standard and your specific structure.

There are also broader changes in the revised FRS 102 around how revenue and leases are recognised, aligned more closely with international standards. For most small Gulf-owned companies, holding entities, property vehicles, consultancy companies, the revenue and lease changes are less likely to bite than the disclosure changes. But for trading companies with contracts spanning periods, or companies leasing assets, they can change how and when figures appear in the accounts.

The practical takeaway is reassuringly boring: if Fileminder prepares your accounts, this is already handled. Our ACCA-qualified accountants prepare under the current standard as a matter of course, the 1 January 2026 revision is part of how we work, not an extra you need to action. The reason we're flagging it is that if you prepare your own accounts, or use a provider who isn't on top of UK GAAP changes, accounts prepared to the old disclosure rules can be queried or rejected, and inaccurate related-party or dividend disclosure is exactly the kind of thing that creates problems later.

If you're unsure whether your company's structure triggers the new disclosures, particularly if you pay yourself dividends or have inter-company arrangements, that's worth a short conversation before your next year-end. We can tell you in a few minutes whether anything changes for you.