FRS 102 Amended 2026 · IFRS 16
UK lease accounting software for FRS 102 and IFRS 16
Most lease accounting software is built for large enterprises applying IFRS 16 internationally. AuditLease is built for UK companies and their accountants, with FRS 102 treated as a standard in its own right and every output ready for the audit file.
Why UK-first matters here
For accounting periods beginning on or after 1 January 2026, the amendments to FRS 102 remove the operating and finance lease distinction for lessees. Most leases move onto the balance sheet as a right-of-use asset with a matching lease liability. For a 31 December year end, the first affected accounts are those for the year ending 31 December 2026, and the date of initial application is 1 January 2026.
That is a UK-specific change on a UK-specific timetable. International products either do not model FRS 102 at all or treat it as a variant of IFRS 16, which matters most at transition: the amended FRS 102 permits only the modified retrospective approach for lessees, where IFRS 16 offered a choice. Getting that wrong is not a formatting problem.
If you are working out what the change means before choosing anything, start with the FRS 102 lease accounting explainer or the transition guide.
What you get
FRS 102 as a first-class standard
Not an IFRS 16 product with a UK setting bolted on. The 2026 amendments to Section 20 are modelled directly, including the modified retrospective transition, which is the only approach the amended standard permits for lessees.
Both standards in one account
IFRS 16 and FRS 102 share the same measurement core, applied per legal entity. A group can report a UK subsidiary under FRS 102 and an IFRS reporter under IFRS 16 without a second system.
Judgements recorded, not assumed
The discount rate, the lease term and the treatment of options each require a written rationale stored alongside the calculation. The rate, the reasoning and the resulting liability stay linked.
Calculation runs that cannot be edited
A completed calculation run is immutable. Changing an input creates a new version rather than overwriting the old one, so last year’s figures still reconcile to last year’s file.
Journals that have to balance
Every journal line carries its lease, its calculation run and its originating schedule line. Batches are validated before they are posted, so an unbalanced batch never reaches the ledger.
Outputs formatted for UK statutory accounts
Period-end reports and the statutory accounts note come out in the shape a UK filer needs, alongside Excel and CSV exports and journal formats for Sage 50 and Xero.
The full capability list, including the lease register, group consolidation and multi-currency handling, is on the features page.
Getting figures out
Results leave AuditLease as Excel and CSV exports, period-end reports, the statutory accounts note, and journal files in Sage 50 and Xero formats. There is also an API and webhooks for teams that want to pull figures programmatically.
These are exports and interfaces rather than a direct posting connection into your ledger: the journal file is produced for you to review and import, which is the behaviour most finance teams want for a balance that carries this much judgement.
Try it on your own leases first
AuditLease is free for up to 3 active leases with no credit card. Paid plans start at £29 a month. Accountants managing several client portfolios can price on total active leases across all clients rather than per seat or per client, from £149 a month, which is set out on the page for accounting firms.
If you would rather test the arithmetic before creating anything, the free FRS 102 lease calculator and IFRS 16 lease liability calculator run a single lease end to end, in the browser, with no sign-up.
Common questions
What is the best lease accounting software for FRS 102 in the UK?
Most lease accounting software is built for large enterprises applying IFRS 16 internationally, and treats FRS 102 as an afterthought or does not support it at all. For a UK private company the deciding factor is usually whether the product treats FRS 102 Section 20 as amended in 2026 as a first-class standard, handles the modified retrospective transition correctly, and produces outputs formatted for UK statutory accounts. AuditLease is built specifically for that market.
Do UK companies need lease accounting software for the 2026 FRS 102 changes?
Not necessarily, but the change is significant. For accounting periods beginning on or after 1 January 2026 the operating and finance lease distinction is removed for lessees, so most leases move onto the balance sheet as a right-of-use asset and a lease liability. A handful of leases can be managed in a spreadsheet. A portfolio of any size, with modifications, remeasurements and a transition to document, is where spreadsheets become hard to audit.
Does AuditLease support both FRS 102 and IFRS 16?
Yes. Both standards share the same present value, amortisation and depreciation core, with the framework-specific differences applied per legal entity. A group can run FRS 102 for its UK subsidiaries and IFRS 16 for an entity reporting under full IFRS in the same account.
How much does UK lease accounting software cost?
AuditLease is free for up to 3 active leases with no credit card required. Paid plans start at £29 a month, and firm plans for accountants managing multiple client portfolios start at £149 a month, priced on total active leases rather than per seat or per client.
Start with three leases, free
No credit card. Add your own leases and see the schedules, journals and statutory note come out the other side.