A correction to your total cash outflow figure

The total cash outflow for leases, which FRS 102 asks you to disclose, was understating the amount for leases that pay in advance. The figure will increase for some periods, and we would rather tell you plainly than let you find it.

Where a lease pays in advance, the first instalment falls due on the day the lease starts, before any interest has accrued, and it appears in no row of the amortisation schedule. Lease102 was building the cash figure by adding up that schedule, so the disclosure was short by that first instalment in the period the lease began. Leases paying in arrears were never affected.

Only the period in which each lease was first recognised is affected, so if all your leases began in earlier years your current figures do not move. Interest expense, the liability roll-forward and the right-of-use asset note were all unaffected.