FRS 102 2026
Balance Sheet Impact Assessment
Enter your lease details to see how the 2026 FRS 102 amendments will affect your balance sheet, P&L, and EBITDA. Add multiple leases to assess your full portfolio.
Your leases
Total annual payments for this lease
Balance sheet impact
New ROU Assets
£259,769
Added to fixed assets
New Lease Liabilities
£259,769
Added to debt
Current portion
£47,012
Due within 12 months
Non-current portion
£212,757
Due after 12 months
Year 1 P&L impact
Old vs new accounting — Year 1
EBITDA impact
+£60,000
Lease payments move below the EBITDA line. Under FRS 102, rent is replaced by depreciation (below EBIT) and interest — both excluded from EBITDA.
Why Year 1 P&L is higher
Under FRS 102, your lease works like a mortgage. At the start, most of each payment is interest on the large opening liability. Over time, interest reduces and the total charge falls below the old rent cost.
Annual depreciation
£51,954 (flat)
Year 1 interest
£12,988 (reduces)
Lease payment maturity
This is the disclosure format required in your statutory accounts under FRS 102.
Less than 1 year
£60,000
1–5 years
£240,000
More than 5 years
£0
Full amortisation schedule
Methodology and assumptions
- Lease liabilities calculated as the present value of future annual payments, discounted at the incremental borrowing rate entered, using annual compounding.
- ROU asset set equal to the opening lease liability (no initial direct costs, prepayments, or restoration provisions included).
- ROU asset depreciated on a straight-line basis over the remaining lease term.
- Lease liability unwound using the effective interest method.
- This tool reflects a modified retrospective transition approach. Full retrospective calculations may differ.
- Results are indicative estimates only. For accurate calculations with documented judgements, use AuditLease.
Ready to run your actual calculations?
This tool gives you a useful estimate. AuditLease gives you precise calculations, documented accounting judgements, journal entries, amortisation schedules, and a statutory accounts note — ready for the audit file.