Financial Statements
The Lumen Collective prepares statutory financial statements under both FRS 102 and IFRS for UK businesses. We have a particular specialism in IFRS and in the new FRS 102 standards for lease accounting and revenue recognition, effective for periods beginning on or after 1 January 2026. Our services cover statutory accounts, management accounts, audit preparation, Companies House filings and accounting advisory on complex transactions. The firm is ICAEW-regulated.
Accurate, Compliant Financial Statements Prepared to the Standard Your Business Needs
Financial statements are the foundation of trust between your business and its stakeholders. Whether you are reporting to Companies House, satisfying your auditors or presenting to investors, your accounts need to be accurate, compliant and tell a clear story about your financial position.
The Lumen Collective prepares financial statements under both FRS 102 (the UK standard for most SMEs) and IFRS (required for listed companies and increasingly adopted by ambitious private businesses). We handle everything from initial accounting analysis through to final filing.
IFRS Specialism
For businesses reporting under International Financial Reporting Standards, whether by choice, regulatory requirement or group reporting obligation, we provide specialist IFRS accounting expertise. IFRS is more complex and prescriptive than FRS 102, and many accountancy firms lack the depth of experience to handle it confidently. We advise on IFRS adoption and first-time application, complex areas including financial instruments (IFRS 9), revenue recognition (IFRS 15) and leases (IFRS 16), group consolidation and intercompany accounting, and disclosure requirements and presentation standards.
New FRS 102 Standards: Lease Accounting and Revenue Recognition
The revised FRS 102 standard introduces significant changes to lease accounting and revenue recognition that will affect most UK businesses. These changes align FRS 102 more closely with IFRS and require careful preparation.
For lease accounting, the new standard requires lessees to recognise most leases on the balance sheet as a right-of-use asset and corresponding lease liability. This replaces the previous distinction between finance and operating leases. It affects key metrics including EBITDA, net debt and gearing ratios, and may have implications for banking covenants and investor reporting. We help businesses assess the impact of the new lease standard on their financial statements, implement the required calculations and disclosures, and manage the transition including comparative period adjustments.
For revenue recognition, the new standard introduces a five-step model for determining when and how revenue is recognised. This is particularly relevant for businesses with complex contracts, bundled deliverables, long-term projects or subscription-based revenue models. We advise on applying the new revenue recognition principles to your specific contracts and business model.
Core Services
Our financial statements and accounting services cover statutory accounts preparation under FRS 102 and IFRS, management accounts and monthly or quarterly reporting, audit preparation and support including liaison with your auditors, Companies House filings and compliance deadlines, accounting advisory on complex transactions including restructurings, acquisitions and share-based payments, and FRS 102 Section 1A accounts for smaller entities.
Frequently Asked Questions
What is the difference between FRS 102 and IFRS?
FRS 102 is the UK financial reporting standard used by most private companies. IFRS is the international standard required for listed companies and used by some private companies, particularly those with international operations or investors. IFRS is generally more detailed and prescriptive, with specific standards covering individual topics such as leases, revenue and financial instruments.
When do the new FRS 102 lease and revenue standards take effect?
The revised FRS 102 standards are effective for accounting periods beginning on or after 1 January 2026. Early adoption is permitted. Businesses should start assessing the impact now, particularly if they have significant operating leases or complex revenue arrangements.
Do you prepare accounts for audit or just for filing?
Both. We prepare financial statements to audit-ready standard, including all supporting schedules, reconciliations and documentation that auditors require. We also prepare abbreviated or micro-entity accounts for Companies House filing where appropriate.
Can you help if we are transitioning from FRS 102 to IFRS?
Yes. First-time adoption of IFRS requires careful planning, including restatement of comparatives, assessment of accounting policy choices and preparation of an IFRS 1 opening balance sheet. We guide businesses through the full transition process.
What if we have complex transactions like restructurings or share schemes?
We have deep experience in accounting for corporate restructurings (including demergers, hive-ups and debt-for-equity swaps), share-based payments (EMI, CSOP, growth shares) and group reorganisations. These areas require careful judgement and technical knowledge that goes beyond standard accounts preparation.