Balance sheet format: the order of items under FRS 102

A UK company balance sheet prepared under FRS 102 lists items in the order set by Schedule 1 of the 2008 accounts regulations, not in an order the preparer chooses. Most UK companies use Format 1, a vertical layout running from fixed assets, through current assets and creditors, to capital and reserves. This page sets out that order, the alternative Format 2 and the rules on combining or adapting lines.

Where does the balance sheet format come from?

The format comes from company law, and FRS 102 points to it. Small companies use Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008 (SI 2008/409). Medium and large companies use Schedule 1 to SI 2008/410, which has the same headings with more sub-items.

FRS 102 Section 4 covers the statement of financial position. The FRC says its requirements “have been modified to reflect the requirements set out in company law.” Small companies using Section 1A follow the same formats.

Format 1: the order of items

Format 1 is the vertical balance sheet you see in most UK accounts. These are the headings for a small company, in the order the law sets.

The medium and large company format adds lines such as development costs, patents and assets in course of construction.

How Format 1 adds up

Format 1 works as a running calculation. Each subtotal answers a question a reader of the accounts will ask.

1. Add fixed assets (B).
2. Add current assets (C) and prepayments (D).
3. Deduct creditors due within one year (E) to get net current assets (F).
4. Add F to fixed assets to get total assets less current liabilities (G).
5. Deduct long-term creditors (H), provisions (I) and accruals (J) to get net assets.
6. Net assets equal capital and reserves (K).

Note 8 to the formats says prepayments count in net current assets wherever they are shown. Notes 1 and 6 let you show both items A and D within other debtors (C.II.3) instead.

Format 2: the two-sided layout

Format 2 shows the same information in two blocks, headed “Assets” and “Capital, reserves and liabilities”.

Under note 10, Format 2 must show creditors due within one year and after one year separately for each line and in total. Format 2 has no net current assets subtotal.

Rules for combining and leaving out lines

The law allows some flexibility, but only within set rules. The key ones in Schedule 1 are:

• items must appear in the order and under the headings of the chosen format
• headings do not need their letters or numbers printed
• any item can be shown in more detail than the format requires
• items with Arabic numbers can be combined if they are not material, or if combining them helps the reader (then shown separately in a note)
• a heading with no amount this year can be left out, unless the prior year had one
• directors must adapt Arabic-numbered items where the nature of the business requires it

Adapted formats

Directors can adapt a format to separate current and non-current items instead. Paragraph 1B of Schedule 1 allows this if the information is at least equivalent to the standard format and follows generally accepted accounting practice. FRS 102 sets the minimum line items for an adapted balance sheet in an appendix to Section 4, “Adapting the balance sheet formats”.

The FRC issued an amendment on 18 February 2026, effective from 1 January 2027, that mainly affects entities using adapted formats. It follows the replacement of IAS 1 with IFRS 18. Our FRS 102 changes guide covers the wider updates.

Micro-entities

Micro-entities have a shorter balance sheet in Section C of Schedule 1. It keeps the headings A to K but drops most of the sub-items. Companies House says a company is a micro-entity if it meets two of: turnover of £1 million or less, £500,000 or less on the balance sheet, and 10 employees or fewer. Micro-entities usually report under FRS 105 rather than FRS 102; see our micro-entity accounts guide.

Which format applies to you?

• If you are a small company using FRS 102 Section 1A, use Format 1 or Format 2 from SI 2008/409, or an adapted format.
• If you are a medium or large company, use the fuller formats in SI 2008/410.
• If you are a micro-entity, you can use the shorter Section C formats.
• If you want an IFRS-style layout, use adapted formats and check the FRS 102 minimum line items.

To read a finished balance sheet, see how to read a balance sheet. For a worked layout, see our balance sheet example template.

Frequently asked questions

What order do items go on a UK balance sheet?

In Format 1: called up share capital not paid, fixed assets, current assets, prepayments, creditors due within one year, net current assets, total assets less current liabilities, long-term creditors, provisions, accruals and deferred income, then capital and reserves.

Can I change the order of the balance sheet?

Not freely. You must follow your chosen statutory format, though you can adapt it to separate current and non-current items if the information is at least equivalent.

What is the difference between Format 1 and Format 2?

Format 1 is vertical and shows net current assets. Format 2 lists assets in one block and capital, reserves and liabilities in another, with no net current assets subtotal.

Do I have to show a line with a nil balance?

No. A heading can be left out if there is no amount for the current year, unless there was an amount for the prior year.

When does the 2026 FRS 102 adapted formats amendment apply?

The FRC issued it on 18 February 2026 and it is effective from 1 January 2027.