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FRS 102 Transition
Transition existing UK SME leases to FRS 102 Section 20: setting the transition date, modified retrospective approach, opening balances, transition journal.
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FRS 102 Modified Retrospective Approach
The default FRS 102 transition method recognises the lease liability and ROU asset at the date of initial application, without restating comparatives.
Setting Your Transition Date
The FRS 102 transition date determines when you first apply Section 20. For most UK SMEs: accounting periods beginning on or after 1 Jan 2026.
Opening Balance Calculations
FRS 102 transition requires calculating opening lease liability and ROU asset at the transition date. How Lease102 generates Day 1 balances.
Transition Journal Entry
The FRS 102 transition journal recognises opening ROU, lease liabilities, and any retained earnings adjustment. Lease102 generates the entry.