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.

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 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.