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Discovery Call

FRS 102 lease accounting has changed. Understanding what these changes mean for your business before they impact your accounts is key.

The impact could extend to:

• Balance sheets
• Budgets and forecasts
• Profit measures, including EBITDA
• Financial ratios, including liquidity, gearing and covenant calculations
• Company size and audit status
• Earn-out calculations in acquisitions

If you haven’t assessed the impact yet, now is the time to understand what the changes mean for your business.

Remember, the first year-end impacts for the revised FRS 102 will take effect from 31 December 2026.

Our FRS 102 Health Check can help

Following an initial discovery call, our FRS 102 specialists will assess how the new lease accounting requirements affect your business and accounts. You don't need a large or complex lease portfolio to be affected, a single significant property or equipment lease could have a material impact.

We’ll help you understand:

• Which leases and accounting areas are affected
• The potential impact on your financial statements and key measures
• What needs to be addressed in your current accounting and reporting
• Any implications for your next reporting period or audit, where applicable
• How new leases or renewals could affect future financial statements, forecasts, ratios and covenant calculations, so these can be factored in before terms are agreed

Leases are likely to be most affected, but other changes, including revenue recognition, fair value and going concern disclosures, could also impact your financial statements.

Beyond reviewing your leases, we’ll consider other areas that could affect your business, including related-party disclosures, group reporting, bank covenants and FRS 105 eligibility.

And if the changes aren’t likely to have a significant impact on your business, we’ll tell you that too.

Get clarity on your FRS 102 position and make sure there are no surprises at your next year-end.