Does this sound familiar?

The new requirements under FRS 102 Section 20 add significant complexity to lease accounting – especially when processes still rely on spreadsheets, manual calculations, and disconnected systems.

More leases need to be recognized on the balance sheet under FRS 102 Section 20

Right-of-use assets and lease liabilities are still calculated manually in Excel

Contract modifications require time-consuming recalculations

Discount rates, lease terms, and payment schedules are managed across different files

Recurring calculations and journal entries create additional workload during closing

Lease data from multiple entities and systems needs to be consolidated

FRS 102 and IFRS 16 need to be managed in parallel across the group

Forecasts and future lease impacts require separate calculations

Providing transparent and traceable data for auditors takes considerable time

Where FRS 102 lease accounting gets complex

In practice, lease portfolios are constantly evolving. Contracts change, payment schedules shift, options need reassessment, and accounting values must be updated throughout the lease term.

The real challenge, then, is not understanding the requirements of FRS 102 Section 20, but applying them consistently across numerous lease contracts while keeping calculations, journal entries, and reporting accurate and traceable.

Envoria brings your lease contracts, calculations, journal entries, and reporting together in one central solution.

Envoria's FRS 102 software supports your entire lease accounting process

From initial contract data to calculations, closing, and reporting, Envoria helps you automate your FRS 102 processes throughout the entire lease lifecycle.

Reliable lease accounting starts with complete and structured contract data. Payment schedules, lease terms, options, and accounting parameters provide the basis for all subsequent calculations.

With Envoria, you can:

  • Import contracts from ERP and source systems
  • Upload contract data via Excel
  • Centrally manage payment schedules, lease terms, and options
  • Manage entities, currencies, and accounting parameters
  • Maintain contract versions and changes

Your benefit:

Enjoy one reliable source of data for all your FRS 102 calculations.

Apply consistent accounting rules across your lease portfolio and ensure that the relevant parameters are reflected in your calculations.

With Envoria, you can:

  • Account for short-term and low-value lease exemptions
  • Manage lease terms, including extension and termination options
  • Define and manage discount rates
  • Apply consistent accounting parameters across contracts and entities

Your benefit:

Benefit from consistent accounting logic instead of individual spreadsheet solutions.

Based on your contract data, Envoria automatically calculates and updates the relevant accounting values throughout the lease term.

With Envoria, you can:

  • Calculate lease liabilities automatically
  • Determine right-of-use assets
  • Calculate interest and depreciation
  • Create payment and amortization schedules
  • Perform calculations at contract and portfolio level

Your benefit:

Profit from reliable and consistent FRS 102 calculations without complex manual models.

Lease contracts change. Payments are adjusted, terms are extended, or options are reassessed. Envoria helps you reflect these changes consistently in your accounting.

With Envoria, you can:

  • Capture contract modifications
  • Perform remeasurements
  • Process changes to payment schedules
  • Recalculate accounting values automatically
  • Keep previous contract versions fully traceable

Your benefit:

There is no need to rebuild calculations manually whenever a contract changes.

Turn your calculated lease values into accounting-ready outputs and streamline recurring closing activities.

With Envoria, you can:

  • Automate periodic calculations
  • Generate journal entries according to FRS 102
  • Review and approve calculations
  • Export postings to ERP and accounting systems
  • Forecast future postings

Your benefit:

Enjoy less manual work during month-end, quarter-end, and year-end closing.

Use your FRS 102 lease accounting data for more than compliance. Envoria provides a central source for reporting, forecasting, planning, and audit requirements.

With Envoria, you can:

  • Generate lease schedules
  • Forecast future postings and lease impacts
  • Analyze your lease portfolio
  • Create standard and customized reports
  • Trace calculations and changes through a complete audit trail

Your benefit:

Profit from one consistent data source from lease contract to financial reporting.

Reliable lease accounting starts with complete and structured contract data. Payment schedules, lease terms, options, and accounting parameters provide the basis for all subsequent calculations.

With Envoria, you can:

  • Import contracts from ERP and source systems
  • Upload contract data via Excel
  • Centrally manage payment schedules, lease terms, and options
  • Manage entities, currencies, and accounting parameters
  • Maintain contract versions and changes

Your benefit:

Enjoy one reliable source of data for all your FRS 102 calculations.

Apply consistent accounting rules across your lease portfolio and ensure that the relevant parameters are reflected in your calculations.

With Envoria, you can:

  • Account for short-term and low-value lease exemptions
  • Manage lease terms, including extension and termination options
  • Define and manage discount rates
  • Apply consistent accounting parameters across contracts and entities

Your benefit:

Benefit from consistent accounting logic instead of individual spreadsheet solutions.

Based on your contract data, Envoria automatically calculates and updates the relevant accounting values throughout the lease term.

With Envoria, you can:

  • Calculate lease liabilities automatically
  • Determine right-of-use assets
  • Calculate interest and depreciation
  • Create payment and amortization schedules
  • Perform calculations at contract and portfolio level

Your benefit:

Profit from reliable and consistent FRS 102 calculations without complex manual models.

Lease contracts change. Payments are adjusted, terms are extended, or options are reassessed. Envoria helps you reflect these changes consistently in your accounting.

With Envoria, you can:

  • Capture contract modifications
  • Perform remeasurements
  • Process changes to payment schedules
  • Recalculate accounting values automatically
  • Keep previous contract versions fully traceable

Your benefit:

There is no need to rebuild calculations manually whenever a contract changes.

Turn your calculated lease values into accounting-ready outputs and streamline recurring closing activities.

With Envoria, you can:

  • Automate periodic calculations
  • Generate journal entries according to FRS 102
  • Review and approve calculations
  • Export postings to ERP and accounting systems
  • Forecast future postings

Your benefit:

Enjoy less manual work during month-end, quarter-end, and year-end closing.

Use your FRS 102 lease accounting data for more than compliance. Envoria provides a central source for reporting, forecasting, planning, and audit requirements.

With Envoria, you can:

  • Generate lease schedules
  • Forecast future postings and lease impacts
  • Analyze your lease portfolio
  • Create standard and customized reports
  • Trace calculations and changes through a complete audit trail

Your benefit:

Profit from one consistent data source from lease contract to financial reporting.

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less manual effort through automated lease accounting processes

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faster closing through automated calculations and journal entries

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single source of truth for contracts, calculations and accounting data

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traceable contract changes, calculations, and approvals

Everything you need for FRS 102 lease accounting

One solution for managing, calculating, posting, and reporting your leases

Centralized Lease Data

Contracts → Payments → Terms → Options

Keep all relevant lease and accounting data in one central source of truth.

Automated Calculations

Lease Liabilities → Right-of-Use Assets → Interest → Depreciation

Automate recurring FRS 102 calculations and keep accounting values up to date throughout the lease lifecycle.

Accounting Automation

Journal Entries → Approvals → Closing → Exports

Turn calculated lease values into accounting-ready outputs and streamline recurring accounting activities.

Reporting & Control

Reports → Forecasts → Audit Trail → Simulations

Gain transparency across your lease portfolio with consistent reporting, forecasting, and traceable accounting data.

Complex lease scenarios? That’s where Envoria helps.

FRS 102 lease accounting becomes particularly demanding when contracts change, portfolios grow, or multiple accounting standards need to be managed simultaneously.

Contract modifications & remeasurements

Handle changes throughout the lease lifecycle with ease.

  • Capture contract modifications
  • Perform remeasurements automatically
  • Maintain a complete change history

Index-linked & variable lease payments

Keep calculations up to date when lease payments change.

  • Update payment schedules
  • Remeasure lease liabilities
  • Track accounting impacts transparently

Extension & termination options

Reflect changing lease terms consistently in your calculations.

  • Manage extension options
  • Account for termination options
  • Recalculate lease terms and values

Lease incentives & initial direct costs

Include additional cost components in your lease calculations.

  • Capture incentives and direct costs
  • Reflect them in right-of-use assets
  • Automate subsequent calculations

Multi-entity & multi-currency

Manage international lease portfolios in one environment.

  • Manage multiple entities centrally
  • Process contracts in different currencies
  • Standardize processes across your organization

FRS 102 & IFRS 16 in parallel

Use one contract database for different accounting requirements.

  • Apply FRS 102 at entity level
  • Apply IFRS 16 at group level
  • Avoid duplicate contract maintenance

Your path to FRS 102 readiness

Moving to the new lease accounting requirements doesn’t have to mean rebuilding your processes from scratch.

01 Collect: Centralize your existing lease contracts and relevant accounting data.

02 Transition: Import your portfolio and establish the required opening values.

03 Automate: Run FRS 102 calculations, journal entries, and recurring closings.

04 Operate: Continuously manage modifications, reporting, forecasts, and audits.

All the FRS 102 software features you need in Envoria

Contract Management

Centrally manage lease contracts, payment schedules, lease terms, options, and contract versions.

Automated FRS 102 Calculations

Automatically calculate lease liabilities, right-of-use assets, interest, and depreciation.

Contract Modifications & Remeasurements

Process contract changes and consistently update the resulting accounting values.

Discount Rate Management

Define and manage discount rates centrally for different contracts, entities, and portfolios.

Excel Import & Mass Processing

Import and process large volumes of lease contracts efficiently.

ERP & System Integration

Connect Envoria with ERP, contract management, and other financial systems.

Automated Journal Entries

Automatically generate journal entries and transfer accounting data to your financial systems.

Forecasting & Simulation

Forecast future lease impacts, journal entries, and planned contract developments.

Multi-GAAP Accounting

Manage FRS 102, IFRS 16, and other accounting standards within one solution.

Multi-Entity & Multi-Currency

Manage leases across entities, company codes, and currencies.

Governance & Audit Trail

Manage roles and approvals while maintaining traceability of changes, contracts, and calculations.

Reporting

Create standard reports and customized analyses for closing, planning, and management.

Integrate Envoria into your systems

Envoria connects your lease accounting with your existing system landscape, from importing contract data and automating FRS 102 calculations to transferring accounting-ready results back to your financial systems.

  • Flexible contract data input via manual entry, Excel, or connected systems
  • Seamless integration with ERP and other financial systems
  • Automated FRS 102 calculations and lease accounting processes
  • Automated journal entries and accounting data exports
  • Individual interfaces for your existing system landscape
Envoria FRS 102 Software Interfaces

Ready to simplify your FRS 102 lease accounting?

Move away from complex spreadsheets and manual calculations. Manage contracts, calculations, journal entries, reporting, and closing in one solution.

See how Envoria can simplify your FRS 102 processes.

Book your personal demo

FAQ

The FRS 102 changes 2026: The revised FRS 102 Section 20 significantly changes how lessees account for leases. For accounting periods beginning on or after January 1, 2026, most leases are recognized on the balance sheet through a right-of-use asset and a corresponding lease liability. Recognition exemptions are available for certain short-term leases and leases of low-value assets.

For finance teams, this means more contracts need to be captured, calculated, and continuously updated throughout the lease lifecycle. Lease accounting software helps automate these processes and keeps contract data, calculations, journal entries, and reporting in one central system.

FRS 102 Section 20 and IFRS 16 follow a similar approach to lessee accounting. Most leases are recognized on the balance sheet through a right-of-use asset and a lease liability. However, FRS 102 is not identical to IFRS 16 and includes its own simplifications and accounting requirements.

These differences are particularly relevant for international groups where local entities report under FRS 102 while group reporting follows IFRS 16. Envoria enables companies to manage lease data centrally in one platform while applying the appropriate accounting requirements for different reporting standards.

FRS 102 lease accounting can be automated by integrating contract management, accounting calculations, journal entries, closing, and reporting into one process.

With the Envoria software, companies can centrally manage lease contracts and automate calculations for lease liabilities, right-of-use assets, interest, and depreciation. Contract modifications and remeasurements can be processed in the same system, while journal entries, forecasts, and reports are generated from the underlying lease data.

This reduces manual spreadsheet work and creates a consistent process from the initial lease contract through to financial reporting.

Preparing for the revised FRS 102 Section 20 starts with creating a complete overview of existing lease contracts and the data required for their accounting treatment. Companies need to identify relevant leases, collect payment schedules and contractual information, determine appropriate discount rates, and establish the opening values required for the new accounting model.

For larger lease portfolios, software like Envoria can significantly simplify this process. You can import existing contract data in bulk, run calculations using consistent accounting logic, and document all relevant values centrally. This creates a structured foundation for ongoing FRS 102 lease accounting after the transition.

Excel can work well for a small and relatively simple lease portfolio. However, as the number of contracts, entities, currencies, and contract changes increases, spreadsheet-based lease accounting quickly becomes harder to manage.

Dedicated FRS 102 lease accounting software is particularly useful when companies need to process frequent modifications or remeasurements, automate recurring journal entries, manage multiple entities, report under FRS 102 and IFRS 16 in parallel, or provide transparent audit data.

For example, Envoria lease accounting software combines contract management, calculations, journal entries, forecasting, reporting, and audit trails in one solution, reducing manual effort while creating a consistent, traceable lease accounting process.