What is changing in FRS 102 for lease accounting?

The revised Section 20 of FRS 102, effective for periods beginning on or after 1 January 2026, requires lessees to recognise most leases on the balance sheet as a right-of-use asset and lease liability. The previous distinction between operating and finance leases for lessees has been removed, bringing FRS 102 in line with IFRS 16.

Who is affected by the FRS 102 lease changes?

All entities reporting under FRS 102 (UK GAAP) that have lease contracts as lessees. This includes private companies, LLPs, charities, housing associations, and other non-publicly accountable entities in the UK and Republic of Ireland.

How long does it take to get set up?

Most companies go live within a few weeks. Our team imports your leases, calculates opening balances, and ensures everything is compliant before handover.

How does Rubli handle the FRS 102 transition?

Rubli supports the simplified (modified retrospective) transition method required by the 2026 FRS 102 amendments. Our specialists help you capture lease data, determine obtainable borrowing rates, calculate opening balances, and reconcile the equity adjustment. We handle practical expedients including portfolio discount rates and hindsight on lease terms.

Is FRS 102 Section 20 the same as IFRS 16?

Very closely aligned but not identical. The core lessee model is the same: right-of-use asset and lease liability on the balance sheet. Differences include terminology (obtainable borrowing rate vs incremental borrowing rate), more explicit low-value lease guidance in FRS 102, and some disclosure differences. Rubli supports both standards in a single platform.

Can Rubli handle both FRS 102 and IFRS 16?

Yes. Rubli supports FRS 102, IFRS 16, and ASC 842 from a single lease register. Groups with subsidiaries reporting under different standards can manage everything in one place, with entity-specific discount rates and standard-specific disclosures.

What about short-term and low-value lease exemptions?

Rubli tracks exempt leases separately for disclosure purposes. Short-term leases (12 months or less) and low-value leases are expensed on a straight-line basis, and the total expense is reported in your FRS 102 disclosures as required by the standard.

How does Rubli handle lease modifications under FRS 102?

Rubli applies the standard's requirements to assess whether a change is a modification or a new lease, then automatically remeasures the lease liability and adjusts the right-of-use asset. Changes are applied prospectively from the effective date without restating prior periods. Full versioning preserves the complete history.

Can we use spreadsheets to handle the 2026 FRS 102 lease changes?

You can, but the new standard introduces more complex calculations, transition rules, and disclosures. Spreadsheets often lack audit trails, version control, and automated formulas, increasing the risk of errors. Rubli automates these calculations and provides a full audit history, making compliance easier and more reliable.

What FRS 102 disclosure reports does Rubli produce?

Rubli generates all the key FRS 102 lease disclosures: right-of-use asset movement schedules by asset class, lease liability maturity analysis, interest expense and depreciation summaries, short-term and low-value lease expense totals, and total cash outflow for leases. Reports are configurable and export-ready for your annual accounts.

FRS 102 Lease Accounting Software for the 2026 Changes

Automate Section 20 compliance from transition to disclosure. Rubli is purpose-built for UK GAAP to handle right-of-use assets, lease liabilities, journals, and disclosures automatically, so your team can get compliant in weeks, not months.

Trusted by UK GAAP finance teams preparing for the 2026 lease accounting changes

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“Rubli has exceeded our expectations. Intuitive, reliable, and backed by outstanding support.”

Built for UK GAAP and the 2026 FRS 102 Lease Accounting Changes

Rubli automates compliance with the revised FRS 102 Section 20 requirements, bringing most leases onto the balance sheet using a right-of-use asset and lease liability model. From transition and initial recognition to ongoing measurement and year-end disclosures, everything is calculated, reconciled, and audit-ready without spreadsheets or manual work.

What changed?

FRS 102	Before 2026	After 2026
Lease accounting model	Operating leases off balance sheet	Right-of-use assets and lease liabilities on balance sheet
What this means in practice	Simple rent expense with limited disclosure	Standardised measurement, transition journals, and expanded disclosures

How Rubli Supports Your FRS 102 Journey

Our all-in-one lease accounting software provides everything you need to adopt the new lease accounting standard under FRS 102.

Identify Leases in Scope

Rubli helps you interpret the updated FRS 102 rules and confirm which contracts meet the definition of a lease.

Seamless Adoption

Our migration team loads your leases, calculates your opening positions accurately, and prepares your transition journals for the 2026 amendments.

Automated Ongoing Lease Accounting

Rubli takes care of monthly calculations, modifications, remeasurements, journals, and disclosures.

Dedicated UK GAAP Support

Your account manager is a UK GAAP lease accounting specialist, available for technical queries or platform guidance whenever you need it.

Built to Handle What Spreadsheets Can't

Rubli supports the lease scenarios that commonly break spreadsheet-based accounting or create audit risk under the new Section 20.

Handles non-standard rent structures without spreadsheet risk

Rent-free periods and payment holidays
Delayed commencement of payments
Step rents and fixed escalations
Variable and index-linked payments
Irregular or bespoke schedules
One-off or lump-sum payments
Custom payment tables

Makes critical lease judgements auditable and consistent

Renewal and break options
Judgement-based lease term assessments
Purchase options
Reassessment of lease terms
Auditable judgement documentation
Periodic or rolling property leases

Gets you compliant from day one with reconciled balances

Simplified (modified retrospective) transition
Automatic equity adjustment calculation
Practical expedient support (portfolio rates, hindsight)
Prepaid / accrued lease balance handling
Finance lease carry-forward from prior treatment

Accurately reflects incentives without manual recalculation

Rent-free incentives spread over lease term
Landlord contributions
Incentives reflected in ROU asset
Automatic recalculation
Clear audit trail

Processes exits cleanly with full P&L transparency

Full or partial early terminations
Termination penalties
Automatic derecognition of lease liability
Automatic derecognition of ROU asset
Gain or loss recognised in P&L

Track exempt leases for disclosure without balance sheet recognition

Short-term lease exemption (12 months or less)
Low-value asset exemption
Straight-line expense recognition for exempt leases
Disclosure tracking (total expense amounts)
Election tracking by asset class or lease

Handles mid-term changes without restatement risk

Lease term extensions or reductions
Changes in leased space (partial expansions / contractions)
Payment renegotiations mid-term
Change vs new lease assessment
Discount-rate reassessment
Prospective application from effective date
Versioning retained

Corrects issues without reopening closed periods

Late-identified leases
Late-identified amendments
Catch-up posting of depreciation, interest, and liability
No reopening of closed periods

Built-in controls that stand up to audit scrutiny

Period locking (monthly / quarterly / annual)
Full audit trail (who / when / why)
Version-controlled lease history
Document storage (contracts, addenda)
Read-only auditor access
Disclosure-ready outputs aligned to FRS 102 requirements

Why Finance Teams Choose Rubli for FRS 102

Spreadsheets weren't designed for the new Section 20. Rubli delivers a purpose-built system that removes manual risk and gets you audit-ready.

Feature	Spreadsheets	Other Providers	Rubli
2026 FRS 102 ReadyCompliant with the revised Section 20 from day one	Manual rules and formulas	Customisation needed	Purpose-built for Section 20
FRS 102 Transition SupportMigrate existing leases to the new standard smoothly	DIY calculations	Limited or generic	Specialist-led with reconciled balances
Automatic JournalsGenerate accurate journals without manual input	Manual entry	Partial or export-only	Fully automated journals
Average Migration TimeGet up and running quickly		A few months	1–4 weeks
Audit Trail & Period LockingProtect approved balances and track every change		Limited or basic logs	Full audit trail & period locks
Modifications & RemeasurementsHandle mid-term lease changes without restatement	Rebuild formulas	Limited automation	Instant recalculations
FRS 102 Disclosure ReportsGenerate FRS 102 disclosure-ready outputs	Build from scratch	Generic templates	Disclosure-ready reports
Dual Standard SupportReport under FRS 102 and IFRS 16 from one platform	Separate models	Often IFRS 16 only	FRS 102 & IFRS 16 in one platform
Lease Accounting ExpertiseAccess specialist support when you need it		Generic support	FRS 102 specialists on hand
Time to Go LiveGet live and reporting quickly	3–6 months	4–8 weeks	1–4 weeks

Rubli caters for all the lease scenarios we encounter and makes it easy to import data and extract reports. It has removed the risk of errors we previously faced managing leases in Excel.

- Group Financial Manager

FRS 102 Lease Accounting: All You Need to Know

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FRS 102 Resources

Explore our guides and tools to help you navigate the FRS 102 lease accounting changes.

FRS 102 Guides

Discount Rates & OBR

How to determine the obtainable borrowing rate under FRS 102 Section 20, with worked examples...

FRS 102 Transition Guide

Step-by-step implementation guide with worked examples...

FRS 102 vs IFRS 16

Key differences between the two lease accounting standards...

View Complete FRS 102 Guide →

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Lease Calculator

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FRS 102 Lease Accounting Software for the 2026 Changes

Built for UK GAAP and the 2026 FRS 102 Lease Accounting Changes

What changed?

How Rubli Supports Your FRS 102 Journey

Identify Leases in Scope

Seamless Adoption

Automated Ongoing Lease Accounting

Dedicated UK GAAP Support

Built to Handle What Spreadsheets Can't

Complex & Variable Lease Payments

Judgement-Driven Lease Decisions

Transition & Opening Balances

Lease Incentives & Contributions

Early Terminations & Impairments

Short-Term & Low-Value Exemptions

Lease Modifications & Remeasurements

Late-Identified Leases & Catch-Up Accounting

Controls, Audit & Governance