Add a Lease Manually: FRS 102 Inputs Explained

Step 1: Basic Information

Enter the lease identification details: contract reference, lessor name, asset description, and asset class.

Step 2: Lease Terms

Define the commencement date, end date, and lease term in months.

Step 3: Payment Schedule

Define payment amounts and frequency. You can add multiple payment periods for stepped rents or rent-free periods. Where a rent step falls part-way through a payment period, that period is charged at the two rents in proportion to the days each applied and the payment dates are unchanged; the blended period is shown as its own row in the saved schedule. Each row runs until the day before the next one starts, and changing a row's start date moves the previous row's end with it. Rows that overlap, fall outside the lease term or start on the same day are refused with the dates named; all rows are saved together, so a refused set leaves the stored rows unchanged.

Step 4: Discount Rate

Select OBR, IBR, or Implicit rate and enter the annual percentage.

FRS 102 Reference: FRS 102.20.49, 20.49

Step 5: Components

Add any incentives, direct costs, or restoration obligations that affect the ROU Asset.

Step 6: Save

Click 'Create Lease' to save. Lease102 immediately calculates your initial liability and asset value.

Recording a hire with no end date

Set Term basis to "Rolling, until notice" in the Lease Term section. Duration is replaced by the notice period, its unit and who may give notice, and the contractual end date is set to the notice period from the commencement date as you type. Change that date if a longer period is enforceable, for example where a minimum hire period or an early-return charge applies; tick the termination charge box to record that one exists. Where only the lessor may give notice, the end date is left for you to enter, because the notice period does not then fix how long the hire is enforceable for. A rolling record stays live until you record the date the hire ended, using Terminate on the record's page.

FRS 102 Reference: FRS 102 20.38, 20.39

Recording something that is not a lease

The form's Classification section decides whether the record is a lease at all. Leave it on "Lease" for a normal lease you hold as tenant. The other three choices are register-only records, kept for information with no accounting: "Non-lease contract (register only)" for an agreement that is not a lease at all (services, maintenance, support, a software licence or subscription), "Sub-lease you grant (register only)" where you are the landlord on a sub-lease of space you hold, and "Licence you grant (register only)" for a licence to occupy that you grant. On a sub-lease or licence you grant, the Lessor field becomes Landlord or Grantor (your organisation) and is pre-filled with your organisation name, a Counterparty (occupier) is required, and the payments are shown as receivable. Classification can be changed later by editing the record.