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Still not prepared for IFRS 16? Just realised year end is only ten weeks away? DON’T PANIC! Read our short guide to transition (and pick up the phone or drop us an email if you’re still stuck!)

Some practical steps to implementing #IFRS16 in local authorities

Recently the FRC published amendments to FRS 102. The two significant changes to revenue and leases, which broadly align to IFRS, will likely impact EBITDA, earn out calculations, debt and covenant compliance, incentive arrangements, and audit requirements. ? Whilst the effective date of 1 January 2026 may seem some way off, businesses should start planning now based on our experience of supporting clients with IFRS 15 and 16. Our latest article describes the key changes and what businesses should start thinking about. #Deals #FRS102 #Financialreporting https://lnkd.in/eZQsU8rb

The forthcoming amendments to FRS 102, effective from January 2026, represent one of the most significant changes to lease accounting in years. These updates will bring leases onto the balance sheet, aligning UK GAAP more closely with international standards like IFRS 161. For businesses reporting under FRS 102, this is more than just a compliance exercise. It's an opportunity to re-evaluate financial strategies and ensure reporting practices meet modern expectations for transparency and consistency. How are you preparing for the FRS 102 changes? What steps are you taking to ensure a smooth transition? ?? https://bit.ly/3Oz0M5K #ReedAccountancy #Accountancy #Finance #FRS102 #IFRS

The forthcoming amendments to FRS 102, effective from January 2026, represent one of the most significant changes to lease accounting in years. These updates will bring leases onto the balance sheet, aligning UK GAAP more closely with international standards like IFRS 161. For businesses reporting under FRS 102, this is more than just a compliance exercise. It's an opportunity to re-evaluate financial strategies and ensure reporting practices meet modern expectations for transparency and consistency. How are you preparing for the FRS 102 changes? What steps are you taking to ensure a smooth transition? ?? https://bit.ly/3Oz0M5K #ReedAccountancy #Accountancy #Finance #FRS102 #IFRS

Major changes are coming to lease accounting for entities following FRS 102. The Financial Reporting Council's recent amendments align the treatment of leases with IFRS 16, meaning all leases will now appear on the balance sheet. This shift will significantly impact financial statements, KPIs like EBITDA, and even compliance with loan covenants. With these changes effective from 1 January 2026 (early adoption is optional), businesses should act now to assess their lease agreements, update accounting systems, and prepare for the new reporting requirements. Our latest article outlines the key points, potential challenges, and practical steps to help you get ready. Read it here: https://lnkd.in/eeb_9u-8 #AccountingUpdates #LeaseAccounting #FRS102 #IFRS16

?? Understanding IFRS 16: Accounting for Leases – Lessees ???? Leases can include multiple components—lease and non-lease—that must be accounted for separately under IFRS 16. This ensures a clearer financial picture for both lessees and lessors. Lessees should allocate the contract consideration to each lease and non-lease component, using relevant stand-alone prices. For example, non-lease components are accounted for according to applicable accounting standards, while lease components are handled through the present value of payments. A practical expedient allows lessees to simplify the process by treating both lease and non-lease components as a single unit. However, this option isn’t available for lessors. Furthermore, lessees have the flexibility to apply a simplified approach to low-value or short-term leases—helping to streamline their accounting processes. When determining the lease term, all factors influencing the lessee's decision-making must be considered, such as the likelihood of extending or terminating the lease. IFRS 16 has a comprehensive framework, designed to provide transparency in lease accounting. ?? Understanding the nuances of lease components, lease term, and the recognition of assets and liabilities is essential for accurate financial reporting. #IFRS16 #Leases #Accounting #FinancialReporting #Lessee #LeaseComponents #BusinessEducation #AccountingStandards

Lease accounting is evolving under FRS 102! Dive into the details by reading PwC’s 'In depth' publication on the amendments to lease accounting. This guide covers the new accounting model for lessees, the removal of the operating and finance lease distinction, and the alignment with IFRS 16. Essential reading for all FRS 102 reporters: https://pwc.to/4g7zu2v #FRS102 #IFRS

Lease accounting is evolving under FRS 102! Dive into the details by reading PwC’s 'In depth' publication on the amendments to lease accounting. This guide covers the new accounting model for lessees, the removal of the operating and finance lease distinction, and the alignment with IFRS 16. Essential reading for all FRS 102 reporters: https://pwc.to/4g7zu2v #FRS102 #IFRS

Lease accounting is evolving under FRS 102. Our experience from those implementing FRS 101 is that this can be a large exercise both in terms of data collation, accounting judgements and crunching the numbers. Do reach out if you want to chat it through. In the meantime - dive into the details by reading PwC’s 'In depth' publication on the amendments to lease accounting. This guide covers the new accounting model for lessees, the removal of the operating and finance lease distinction, and the alignment with IFRS 16. Essential reading for all FRS 102 reporters: https://pwc.to/4g7zu2v #FRS102 #IFRS Martin Haynes Alice Powell Lynne James