Accounting for Leases - FRS 102 and IFRS 16

Lease accounting is undergoing one of the biggest changes to UK GAAP in recent years. Updates to FRS 102, aligning more closely with IFRS 16, mean that most leases will now need to be recognised on the balance sheet removing the traditional distinction between operating and finance leases.

This shift introduces new complexity, requiring firms to calculate right-of-use assets, lease liabilities, and ongoing depreciation and interest adjustments. These calculations often depend on future payment schedules, discount rates, and contract terms making manual processes increasingly difficult to manage at scale.

nettTracker’s latest guidance explores how these changes work in practice and how firms can approach them more efficiently, using automation to handle calculations and journal entries.

With the changes taking effect from 2026, now is the time for firms to understand the impact and review how they manage lease accounting.

Read the full article here: https://www.nett-tracker.com/news/accounting-for-leases-frs-102-and-ifrs-16