Question 1 of 10

The FRS 102 lease changes, in brief

From accounting periods beginning on or after 1 January 2026, the new FRS 102 lease requirements bring most leases onto the balance sheet for lessees. The previous split between operating and finance leases is removed and replaced by a single on-balance-sheet model based on IFRS 16: a right-of-use asset and a lease liability for most leases. Recognition exemptions may be available for short-term leases and leases of low-value assets.

At transition, each lease liability is measured based on the present value of the remaining lease payments, with a corresponding right-of-use asset recognised. The opening balance sheet impact is the part that many finance teams underestimate, and it depends on having a complete register of leases. For a 31 December year-end, the first affected period begins on 1 January 2026, so the work should not wait until the year-end close.

Getting your leases onto the balance sheet?

Rubli handles the FRS 102 transition and ongoing lease accounting, from the opening balance sheet impact to remeasurements and disclosures, without the spreadsheets.