Services
Our progressive thinkers offer services to help create, protect and transform value today, so you have opportunity to thrive tomorrow.
-
Aviation Advisory
Our dedicated Aviation Advisory team bring best-in-class expertise across modelling, lease management, financial accounting and transaction execution as well as technical services completed by certified engineers.
-
Business Risk Services
Our Business Risk Services team leverage our risk, internal audit and technology subject matter expertise to critically assess your governance, risk and internal control mechanisms, thus helping you to better manage risk and enable more informed decision making.
-
Consulting
Whatever your business needs, our Consulting team can help you to move forward and identify and implement major transformations efficiently and effortlessly.
-
Financial Accounting and Advisory Services (FAAS)
As organisations expand into new markets or undertake functional financial transformations, the challenges faced by their accounting and finance teams become more complex. The Financial Accounting and Advisory Services (FAAS) team at Grant Thornton is a multi-disciplinary team that designs and implements creative solutions to address these complexities.
-
Fintech
Our Fintech team will be offering you an opportunity to sit with our experienced consultants to discuss your challenges.
-
Forensic Accounting
Organisations may undergo some type of dispute or internal investigation during their lifetime. Our Forensic Accounting team can seek evidence that can make the difference between finding the truth or being left in the dark.
-
Risk Advisory
Our Risk Advisory team delivers innovative solutions and strategic insights for the Financial Services sector, addressing disruptive forces, regulatory changes, and emerging trends to enhance risk management and foster competitive advantage.
-
Sustainability Desk
We recognise that businesses are operating at different levels of maturity when it comes to sustainability, and pride ourselves on working with our clients to develop bespoke solutions to their exact needs.
Our services can strengthen your business and stakeholders' confidence. You'll receive professionally verified results and insights that help you grow.
Our tax services help you gain trust and stay ahead, enabling you to manage your tax transparently and ethically.
-
Company Tax
Our tax team is made up of highly experienced professionals who work with our clients to ensure they are compliant with all aspects of their corporation tax obligations by gaining a deep understanding of the businesses.
-
Global Mobility
Grant Thornton offer a different approach to managing global mobility. We have brought together specialists from our tax, global payroll, people and change and financial accounting teams
-
Indirect Tax Advisory & Compliance
Our Indirect Tax team helps businesses manage their IOM, UK and global indirect tax risks which, as transactional taxes, can quickly become large liabilities.
-
International Tax
We work closely with our colleagues globally to provide a seamless multi-jurisdiction service offering which ensures clients have an appropriate tax structure that mirrors what they are doing operationally – a key consideration in a world where it is no longer possible to separate a company’s tax and operational presences.
-
Private Client
Our team of experienced advisors can assist and navigate you through the tax issues arising when establishing a business, moving to the Island, leaving the island, passing on wealth alongside residence and domicile issues. We can help minimise the impact that taxes, such as income tax, capital gains tax and inheritance tax, may have upon your personal wealth.
Explore key changes to FRS 102 Section 23, including the new five-step revenue model and its impact on financial reporting in Ireland and the UK.
Contents
The Financial Reporting Council (FRC) has completed its second periodic review of FRS 102, introducing significant changes to how entities in the UK and Ireland recognise revenue from contracts with customers. These updates, effective for periods beginning on or after 1 January 2026 (with early adoption permitted), will have practical implications for a wide range of businesses.
Why this matters
The revised Section 23 of FRS 102 replaces the previous risks-and-rewards model with a comprehensive five-step approach to revenue recognition. This shift brings FRS 102 closer to international standards (IFRS 15), aiming to improve consistency and transparency in financial reporting. The changes are particularly relevant for accounts preparers, finance teams, and industry professionals who manage complex contracts or multiple deliverables.
Key changes at a glance
- New five-step revenue model:
- Identify the contract(s) with a customer
- Identify the performance obligations
- Determine the transaction price
- Allocate the price to performance obligations
- Recognise revenue as obligations are satisfied
- Focus on performance obligations: Revenue is now recognised as and when performance obligations are met, not simply when risks and rewards transfer.
- Wider impact: All entities entering contracts with customers are affected, including micro entities under FRS 105.
- More detailed disclosures: The revised standard requires enhanced disclosures about revenue streams, contract balances, and performance obligations.
Practical implications for businesses
Some sectors will see more significant changes than others, for example:
- Supply chain and telecoms: Businesses with bundled products (e.g., “free” handsets) must allocate revenue based on relative standalone selling prices, not marketing cost.
- Professional services and asset management: Performance-based and contingent fee arrangements must estimate variable payments, subject to constraints.
- Retail: Accounting for returns, loyalty schemes, and warranties will change, with new requirements for recognising refund liabilities and assets.
Other areas affected include deferred payments, licensing, non-refundable fees, and customer options for additional goods or services.
Transition options
Entities can choose between:
- Modified retrospective approach: No restatement of prior year figures; adjustments are made to opening reserves in the year of adoption.
- Full retrospective approach: Restate prior year figures as if the new rules had always applied.
Both methods require specific disclosures to explain the impact of the transition.
Enhanced disclosure requirements
The revised Section 23 mandates more extensive disclosures, including:
- Disaggregation of revenue by type, geography, or timing;
- Details of contract balances and movements;
- Information on performance obligations and payment terms;
- Methods used for recognising revenue over time;
- Explanations of significant unsatisfied obligations.
What should you do next?
- Review contracts: Assess how the new model affects your revenue recognition policies, especially for complex or bundled arrangements.
- Prepare for new disclosures: Ensure systems can capture the required data for enhanced reporting.
- Plan your transition: Decide which transition approach best suits your business and prepare for the necessary disclosures.
Grant Thornton’s technical experts are closely monitoring these changes and can help you navigate the transition with confidence.
For the full technical guidance, download the complete report [ 11702 kb ].
Authors
-
Simon Nicholas Simon is an audit and advisory partner and the Head of Practice at Grant Thornton's Isle of Man office. He has over 25 years of experience working with financial services clients, as well as clients in the technology and gaming sectors, and advising governments.View Profile -
Louise Kelly Louise has over 14 years’ experience working on all sizes of public sector and privately owned companies. Her portfolio includes clients in various sectors including construction, education, motor retail, manufacturing and public sector.View Profile