FRS 102 2026 implementation pack
For accounting periods beginning on or after 1 January 2026, FRS 102 changes more than it has in a decade. Most operating leases move onto the balance sheet, revenue follows a new five-step model, and UK small companies face a longer list of mandatory disclosures. The first accounts under the new rules are also when lenders, investors and auditors ask why EBITDA, gearing and net assets have moved.
The FRS 102 2026 Implementation Pack turns that change into a structured piece of work. In one Excel workbook it shows which amendments affect you, measures your leases and revenue contracts at the date of initial application, produces the opening adjustments and journals, and drafts the notes that explain the change – with a complete worked example to follow.
What it does
Impact assessment: 27 questions on leases, revenue, the other amendments and the effects beyond the accounts, each pointing to the paragraphs that apply and to the part of the pack that deals with them.
Lease transition: measures up to 20 former operating leases under the transition rules in Section 1 – the liability at the incremental or obtainable borrowing rate, the right-of-use asset adjusted for prepaid or accrued rent and onerous provisions, stepped rents, and the low-value and short-term reliefs – with first-year interest, depreciation, the current and non-current split and amounts due after five years.
Revenue transition: up to 15 contracts with up to three performance obligations each; allocates the transaction price and compares Section 23 revenue with your previous policy under the cumulative effect or full retrospective method.
Opening position: the adjustment to retained earnings (with a tax effect at the rate you choose), the restated opening balances and balanced journals at the date of initial application and for the first year.
Disclosures: the first-year effect on profit, revenue and EBITDA, right-of-use assets by class, lease liabilities, the discount rates used, commitments for short-term and low-value leases, and draft wording for the change in accounting policy that updates with your figures.
Disclosure checklist: 46 new or changed disclosures marked for FRS 102 in full, Section 1A (UK and Ireland) and the reduced disclosure framework, with a status column to track your progress.
FRS 102 v IFRS: 68 differences between the amended FRS 102 and IFRS Accounting Standards – leases, revenue, fair value, uncertain tax treatments, supplier finance, the conceptual framework and impairment – for groups that report under both.
What you get
One Excel workbook (.xlsx) with instructions, the working tabs, two reference tabs and a completed worked example for a fictitious UK company with seven leases and five contracts.
Clearly marked input cells, protected formulas, 15 built-in checks and a status line on every tab.
Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.
Who it is for
Finance teams and accountants preparing the first financial statements under the amended FRS 102 for UK and Irish companies – whether they apply FRS 102 in full, Section 1A or the reduced disclosure framework.
Scope
The calculators cover leases held as lessee and revenue contracts in progress at the date of initial application. Lessor accounting, leases that start later, modifications and sale and leaseback follow Section 20 directly. Tax is applied at the rate you enter rather than calculated – agree the tax treatment of the transition with your adviser. The pack is a working aid: it does not replace FRS 102 or professional judgement, and its scope and limitations are set out in the Instructions tab.
