Transition date
The date from which the new FRS 102 lease accounting standard is applied for the first time.
Definition
The transition date is the date of initial application of the new lease requirements. Under the amended FRS 102 only the modified retrospective approach is permitted for lessees, so it is the start of the period of first application and comparatives are not restated. For entities with a December year end adopting the FRS 102 2026 amendments, that date is 1 January 2026.
Why it matters
The transition date determines which leases are in scope for transition calculations and what opening balances must be recognised. A separate calculation run is required for each in-scope lease at the transition date.
In AuditLease
AuditLease supports FRS 102 transition calculation runs and generates the transition disclosure note showing the opening lease liability and ROU asset recognised at transition.
Related terms
Put this into practice with AuditLease
AuditLease handles IFRS 16 and FRS 102 lease calculations, statutory note generation, journal entries, and audit evidence, so your team spends less time on spreadsheets and more time on judgements.
This definition is for general information only and is not accounting or legal advice. Definitions are based on IFRS 16, FRS 102, and associated guidance published by the IFRS Foundation and the Financial Reporting Council. Users should refer to the applicable accounting standards and their professional advisers for judgement-specific matters.