Changes to FRS 102: How Will This Affect Your Company?

The new lease accounting rules under FRS 102 mark a fundamental shift in how leasing arrangements are reflected in company accounts.

While your underlying business activity remains unchanged, the story told by your financial statements may look very different – almost overnight – bringing operating leases that were once out of sight, onto the balance sheet for the first time.

Companies should:

• identify affected leases
• understand the likely balance sheet and profit impact
• consider how these changes will feed through into both statutory and management reporting
• have early discussions with shareholders, banks and lenders to manage perceptions
• understand the wider tax implications

At MHA, our advisers explore the new lease accounting rules and how these could impact your business:

1. MHA | FRS 102 changes: What do the new lease accounting rules mean for small companies?
2. MHA | FRS 102 changes: The commercial implications for banking covenants, EBITDA and business valuations
3. MHA | FRS 102 changes: What are the tax considerations for owner-managed businesses?