FRS 102: Upcoming changes

The latest FRS 102 lease accounting changes are reshaping financial reporting for many organisations. Learn what the updates mean, the key areas to consider, and how Rubli can help simplify compliance while reducing manual effort and improving accuracy.

The revised FRS 102 lease accounting requirements, effective for accounting periods beginning on or after 1 January 2026, introduce a new lease accounting model for lessees that aligns more closely with IFRS 16.

Many organisations will need to recognise qualifying leases on the balance sheet by recording a right-of-use asset and corresponding lease liability. This means finance teams will need to capture accurate lease data, perform ongoing calculations and produce compliant financial reporting.

Preparing for the transition involves reviewing lease agreements, determining discount rates, accounting for lease modifications and generating compliant journals and disclosures. Organisations relying on spreadsheets may find these processes increasingly time-consuming and difficult to manage.

Rubli is a cloud-based lease accounting solution designed to simplify compliance with FRS 102, IFRS 16 and ASC 842. The platform automates lease calculations, journal entries and disclosure reporting while managing the full lease lifecycle, from recognition through to modifications, renewals and terminations.

Additional features include AI-powered lease data extraction, multi-currency support, comprehensive audit trails and custom reporting, helping finance teams improve accuracy, reduce manual effort and maintain confidence in their financial reporting.

With the new requirements now in effect, organisations should assess the impact on their lease portfolio and ensure they have the right processes and technology in place for ongoing compliance.