The revised lease accounting requirements in FRS 102 extend beyond initial recognition. Following commencement of a lease, lessees are required to apply ongoing measurement, reassessment and disclosure requirements throughout the lease term. These requirements are set out in Section 20 of FRS 102 and apply to leases recognised under the revised lessee accounting model.

Periods beginning on or after 1 January 2026 are subject to significant changes to lease accounting under FRS 102. The revised requirements remove the previous distinction between finance leases and operating leases and bring nearly all leases onto the balance sheet.