Three months until major UK GAAP changes

Ollie Garrod, Senior technical writer, audit & accounting, Croner-i

Revenue recognition, lease liabilities and performance reporting are about to change radically, but nearly half of businesses are not yet ready for the accounting overhaul, so it is vital to start training staff now, and this affects more than just the finance team, explains Ollie Garrod ACA, accounting specialist at Croner-i.

The landscape of UK financial reporting is about to shift dramatically. Following the Financial Reporting Council’s 2024 review of UK GAAP, new requirements will take effect for accounting periods beginning on or after 1 January 2026.

These are not minor technical tweaks: they represent a significant overhaul, particularly in the areas of revenue recognition and lease accounting. The effects will be felt across the business influencing reported performance, business decisions, and key metrics.

And yet, most organisations are nowhere near ready. In recent research conducted by Croner-i, when asked how prepared they were for the FRS 102 changes, just 3.1% of respondents said they felt fully prepared, while a striking 41.9% admitted they were not prepared at all.

With less than three months before implementation, the reality is that many businesses are facing a steep learning curve – and delaying action could prove costly.

Why the changes matter

The changes to UK GAAP are not confined to the reporting team. Revenue and lease accounting affect the way companies tell their story – not only to regulators and auditors, but to investors, lenders, and other stakeholders who rely on transparent reporting.

Sales teams will need to understand how the wording of contracts can influence revenue recognition. Procurement and operations must recognise how lease arrangements will now create new balance sheet liabilities.

Senior management will need confidence in reported figures that are shifting under the new rules, and in what this means for strategy, covenant compliance, and communication with the market.

This is not just a technical accounting exercise. It is a business-wide change that touches multiple functions and requires a shared understanding across the organisation.

Why start training now?

With less than three months to go until the 2026 UK GAAP changes come into effect, there is no time to delay. Adapting to major accounting changes takes careful planning – contracts will need reviewing, systems and reporting processes updated, and staff at all levels made aware of how the new rules will affect their roles.

Early, targeted training builds confidence and reduces risk. It allows time for practical implementation, testing of systems, and alignment across teams, from finance specialists to sales, procurement, and senior management.

Waiting until the last-minute risks rushed decisions, confusion, and costly mistakes – while starting now ensures your organisation can transition smoothly and with clarity.

Training matters

At Croner-i, we know that preparation is only effective if training is accessible, engaging, and relevant to each audience. That’s why our Navigate Learning platform offers on-demand CPD resources designed to meet the needs of both specialists and non-specialists.

As a subscriber to Business & Accountancy Daily, there is an exclusive free CPD module, FRS 102 lease and revenue recognition rules by Steve Collings FCCA, providing an overview of the key changes. This is a good starting point if you are really feeling unprepared, before diving into the more technical online courses.

For in-depth learning, our Insight courses covering the changes to UK GAAP give finance professionals the depth they need, including:

• Revenue recognition under FRS 102 (2024) by Julia Penny BFP FCA – a deep dive into the new revenue rules;

• Audit implications of the FRS 102 periodic review by John Selwood ACA – highlighting what auditors and preparers need to consider; and

• A comprehensive suite of 10 courses by Steve Collings FCCA, covering the full scope of changes including a series of five courses focusing on other changes beyond revenue and leases (spoiler alert: there are a lot).

Alongside these, our Essentials modules provide clear, accessible overviews for wider teams. Both our UK GAAP Essentials and Audit Essentials products have been fully updated to reflect the upcoming changes, ensuring staff across the business can quickly grasp the key points.

To make training even more accessible, we recently launched a dedicated app. Staff can now access Navigate Learning courses on the go, at a time and place that suits them.

This flexible approach ensures that everyone – from technical experts to decision makers – gets the right level of training at the right time.

A call to action

The 2026 UK GAAP changes will reshape financial reporting for years to come. Their reach will be wide, and the consequences of unpreparedness equally so. The research is clear, with just three months to go most businesses are still in the early stages of readiness.

Those who act now by investing in training and awareness will not only avoid disruption but also turn the transition into an opportunity to strengthen clarity, confidence, and trust. The clock is ticking. The time to act is today.