This is the second in a series of articles offering practical guidance for accountants and finance teams preparing for their first set of financial statements under revised UK GAAP (effective for periods beginning on or after 1 January 2026).

Leases are flagged as a priority technical update in the FRS 102 (2024) transition – and rightly so.

What was previously a commitment note and a straight-line charge through to the income statement becomes a right-of-use (ROU) asset and lease liability on the balance sheet.

Getting there requires a complete lease population, careful judgements on terms and discount rates, and transition decisions that cannot easily be undone.