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Status: Current

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At a glance

  • Section 23 is the FRS 102 revenue section for contracts with customers.
  • It sits inside the wider FRS 102 framework and should be read with the rest of the standard when presentation and disclosure questions spill across sections.
  • This page is the first live child standard page extracted from the September 2024 FRS 102 parent bundle.

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In plain language

If you need to decide when revenue should be recognised under FRS 102, this is the section you start with. The practical work is usually in deciding what the contract promises are, when performance happens, and how variable or deferred amounts should be measured.

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Who this applies to

Use Section 23 when an entity reporting under FRS 102 earns revenue from contracts with customers. You still need the rest of FRS 102 for broader presentation, disclosure, and policy questions.

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Core principles

Section 23 is built around recognising revenue when the entity performs under the contract and can measure the resulting amount reliably. That means revenue is not just a billing exercise. You need to understand the underlying arrangement and the point at which the entity has delivered what it promised.

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Recognition, measurement, presentation, and disclosure

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Recognition

Recognition turns on the contract terms and the substance of the performance. For many arrangements, the critical judgment is whether the entity has transferred goods or services and whether the relevant stage of completion can be measured reliably.

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Measurement

Measurement is not limited to the invoice face value. You need to think about the amount expected under the arrangement, including cases where the consideration is deferred, variable, or otherwise not straightforward.

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Presentation

Section-specific revenue conclusions still need to be presented within the wider FRS 102 reporting model. That means the section does not replace the presentation rules elsewhere in the framework.

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Disclosure

The disclosure story should make the revenue pattern understandable to the reader. If the contract structure or timing is material to understanding performance, the revenue note cannot be treated as a mechanical footnote.

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Effective date and transition

Section 23 forms part of the broader FRS 102 framework, which first became effective for accounting periods beginning on or after 2015-01-01. You should still read the current section in the context of later periodic reviews and amendment cycles.

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Amendments and status

This page is the current live child page under the September 2024 FRS 102 bundle workflow. If a later amendment changes revenue guidance, the existing page should be updated rather than replaced by a separate public version page.
  • IFRS 15: Useful when you need to compare FRS 102 revenue treatment with the IFRS five-step model.
  • ASC 606: Useful when you need a US GAAP comparison point for revenue-recognition topics.

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Source references

  • FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, §23.10-23.16 Recognition logic and the link between contractual performance and revenue recognition.
  • FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, §23.27-23.30 Measurement features and revenue amounts in more complex arrangements.