FRS 102 Section 1A is the version of the main UK accounting standard that small companies can use. It applies the full accounting rules of FRS 102 but requires far fewer notes.
Who uses it
Any company that qualifies as small can prepare its accounts under FRS 102 Section 1A. It is the usual choice for small companies, and for micro-entities that do not want to use FRS 105.
What the accounts contain
- A balance sheet and a profit and loss account.
- Notes, limited mainly to those the law requires of small companies.
- No cash flow statement.
- A directors’ report, which goes to the members but does not have to be filed at Companies House.
How it differs from FRS 105
The figures are measured using the full FRS 102 rules. That means property and investments can be shown at current value, deferred tax is provided, and there are accounting policy choices to make. FRS 105 allows none of these.
Heads up — FRS 102 was amended for periods beginning on or after 1 January 2026. Most leases now go on the balance sheet, revenue follows a new five-step model, and small companies give some extra disclosures.
Read more: FRS 105 vs FRS 102 Section 1A, Notes under FRS 102 Section 1A and Changing the accounts type.