FRED 82, which was published in December 2022 and open for public comment until 30 April 2023, proposed significant amendments to FRS 102 and FRS 105 affecting revenue recognition, lease accounting, and a number of other incremental improvements and clarifications.

The FRC has undertaken significant engagement with stakeholders and is currently taking into account the responses and feedback received across all aspects of the proposals.

The project update highlights that:

• 54 responses on FRED 82 were received and, upon consideration of those response, the final amendments are likely to differ from what was proposed in the exposure draft.
• With respect to proposals regarding revenue recognition, the FRC is moving forwards with proposals to introduce a 'five-step model' of revenue recognition for all FRS 102 and FRS 105 preparers.  The FRC will take into consideration the progress of the International Accounting Standards Board's (IASB's) IFRS for SMEs project which includes similar proposals to those proposed for FRS 102.  It will also seek further simplifications to ensure proportionality for FRS 105 reporters.
• The FRC will bring leases onto the balance sheet for all FRS 102 reporters and is working on how to ensure that the model is proportionate and understandable for FRS 102 preparers of all sizes.
• The FRC expects to issue the final amendments in the first half of 2024 with an effective date not before 1 January 2026.

 A press release and the project update are available on the FRC website.