Dilapidations now measured at present value

A restoration obligation settled at the end of the lease is now capitalised into the right-of-use asset at its present value rather than the undiscounted estimate, as FRS 102 requires where the time value of money is material. Each restoration component has an optional Provision Rate; leave it blank to use the lease's discount rate. A rate of zero is respected as a judgement that discounting is immaterial.

The discount then unwinds over the term, charged as a finance cost and kept separate from lease liability interest, so your interest disclosure is unaffected. You will see a Provision Unwind column on the amortisation schedule and in the CSV, Excel and PDF exports, with matching journal lines.

If you sync journals, map the new Finance Costs - Provision Unwind account under GL Mappings. Leases without a dated restoration component are entirely unaffected.