Applies to: Ireland, United Kingdom, and Northern Ireland - Company accounts
Effective from: 1 January 2026
Financial Reporting Standards: FRS 102 and FRS 102 Section 1A
Overview
BrightAccountsProduction has introduced Phase 2 enhancements to the new Revenue and Lease Accounting model. This update provides additional lease accounting disclosure options for accounting periods commencing on or after 1 January 2026.
These enhancements align with the amendments to FRS 102 introduced by the Financial Reporting Council (FRC), ensuring your accounts remain fully compliant with the latest financial reporting standards.
What's New in Phase 2?
Show Right-of-Use Assets Separately on Balance Sheet
A new optional display feature allows you to present Right-of-Use Assets separately on the face of the Balance Sheet.
When this option is enabled:
- Right-of-Use Assets will be displayed as a separate line item on the face of the Balance Sheet
- Two supporting notes will automatically appear to provide the required lease accounting disclosures
- All relevant disclosures are automatically presented throughout your accounts
This gives you greater flexibility in how lease information is presented in your financial statements.
Prerequisites
Before you can use this feature, ensure the following requirements are met:
1. Jurisdiction Requirements
Your company's Country of Incorporation must be one of the following:
- Ireland
- United Kingdom
- Northern Ireland
2. Financial Reporting Standard
Your company must use either:
- FRS 102, or
- FRS 102 Section 1A
3. Compliance Database Configuration - Step 1
First, you must enable the new accounting standards:
Steps:
- Navigate to Compliance Database
- Go to Legislation, Compliance and Disclosure
- Select Accounting Options
- Enable the checkbox: "Follow FRS 102 Revenue and Lease Accounting Standard for Accounting Periods Commencing on or After 1 January 26?"
4. Compliance Database Configuration - Step 2
Once the above option is enabled, a second option will become available:
Steps:
- In the same Accounting Options section
- Enable the checkbox: "Show Right-of-Use Assets separately on face of Balance Sheet?"
How It Works
Automatic Presentation
Once enabled, BrightAccountsProduction will:
- Display Right-of-Use Assets as a separate line item on your Balance Sheet
- Generate two supporting notes with comprehensive lease accounting disclosures
- Ensure all relevant disclosures appear automatically throughout your accounts
Flexible Options
This feature is optional. You can choose whether to show Right-of-Use Assets separately or include them within other asset categories, depending on your presentation preferences and materiality considerations.
Frequently Asked Questions
Q: Is this feature mandatory?
A: No, this is an optional display feature. You can choose whether to show Right-of-Use Assets separately on the face of the Balance Sheet based on your presentation preferences.
Q: What if I don't see the second checkbox option?
A: The option to "Show Right-of-Use Assets separately on face of Balance Sheet" will only appear after you've enabled the first option: "Follow FRS 102 Revenue and Lease Accounting Standard for Accounting Periods Commencing on or After 1 January 26?"
Q: What disclosures are automatically generated?
A: The system automatically generates two supporting notes that provide all required lease accounting disclosures in accordance with FRS 102 requirements.
Q: Can I use this with FRS 105?
A: No, this specific feature is only available for FRS 102 and FRS 102 Section 1A. FRS 105 has different lease accounting requirements.
Q: Do I need to manually update my nominals?
A: The system will automatically reflect the lease accounting model based on your Compliance Database selections and nominal postings.
Related Features
This Phase 2 enhancement builds upon the earlier release of the Revenue and Lease Accounting model. Together, these updates provide comprehensive support for:
- Five-step revenue recognition model
- Lease accounting disclosures
- Right-of-Use Asset presentation options
Additional Information
Further enhancements and updates related to the lease accounting module will be shared in upcoming releases as the FRC continues to issue guidance on FRS 102 implementation.
For technical assistance or questions about implementing this feature, please contact your support team.
Last updated: November 2025
Version: 2025.11