Lease Accounting is Changing: What UK Organisations Need to Know

From 1 January 2026, new lease accounting requirements will apply to UK organisations reporting under FRS 102 and FRS 102 1A.

In short, most leases will move onto the balance sheet, with lessees recognising a right-of-use asset and lease liability. This may impact reported assets and liabilities, as well as key metrics such as EBITDA, gearing and covenant calculations.

If your organisation has leases for property, vehicles, equipment, or similar arrangements, or if you’re unsure how these changes apply – it’s worth reviewing the impact now.

We’ve put together a document that explains the changes and what to consider ahead of 2026.

Read our document it in full here.