On 27 March 2024, the Financial Reporting Council (‘FRC’) published the final version of the amendments to FRS 102 proposed by the FRC in their Financial Reporting Exposure Draft 82 (‘FRED 82’).

The focus of the amendments is the introduction of IFRS-like revenue and lease accounting with certain simplifications.  However, following the public consultation, there are a number of differences between FRED 82 and the final version of the amendments.

We covered the FRED 82 proposals on these topics in the blogs FRED 82: don't forget revenue and FRED 82: changes to lease accounting, we summarise below some of the key differences between the initial proposals and the final amendments.

Many of the changes between the proposed and published amendments move closer to IFRS – removing proposed expedients or simplifications.

KPMG apply a 5-phase model to implementation of new accounting standards:

  1. Workshop – to upskill your teams, kick off the project, and communicate with key stakeholders
  2. Impact assessment – to determine the changes required to your accounting policies
  3. Accounting papers – to document your new policies, and form a basis for quantification
  4. Quantification – calculate the impact of the standards, and implement necessary system and process changes – such as a leasing tool
  5. Disclosure – prepare the transition note and new disclosures in your financial statements

Do please reach out if you would like to discuss the changes with a member of our team.


  • Promise vs performance obligation – the proposed amendments used the term ‘promises’ to identify distinct goods and services in a contract, but the published amendments use the term ‘performance obligations’ consistent with IFRS
  • Contract modifications – the proposed amendments contained a policy choice as to whether certain contract modifications were be accounted for as a separate contract which have now been removed, aligning more closely to IFRS 15
  • Time value of money – the published amendments increase the period under which the time value of money is accounted for advance / deferred consideration from 6 months (in the proposals) to 12 months, consistent with IFRS 15
  • Disclosures – the published amendments provide more specific types of disclosure disaggregation examples vs the proposals (e.g. type of good or services, geographical market, customer types, point in time vs over-time, and revenue earned as agent vs principal), aligning with the exposure draft on changes to the IFRS for SMEs


  • Lease and non-lease components – the published amendments remove an expedient that allowed lease and non-lease components to be combined using a 50% lease component size threshold, aligning more closely to IFRS 16
  • Gilt rate – the proposed amendments included an option to use a gilt rate as a discount rate where it is not possible to calculate implicit rates or incremental / obtainable borrowing rates, which has been removed
  • Variable payments – the published amendments remove a policy choice which would have enabled preparers not to remeasure lease liabilities due to changes in variable payments linked to an index or rate, which now require remeasurement under the published amendments, aligning more closely to IFRS 16
  • Disclosures – the published amendments add additional disclosure requirements regarding discount rates used and accounting policy choices made in sale and leaseback transactions

How can we help?

KPMG’s Accounting Advisory Services team are on hand to help and support preparers with implementation of the FRS 102 amendments.

Typically implementation starts with a workshop to kick off the project and upskill your team, followed by an impact assessment to assess the impact of the amendments on your group, and subsequently preparation of accounting papers, quantification of transition adjustments, and preparation of new disclosures.  Do please reach out if you would like to talk to our team.