FRS 102 Section 20 is now in effect.

The 2026 FRS 102 updates bring significant changes to how entities in the UK and Ireland account for leases. More leases are now required to be on the balance sheet, with new classification rules and increased disclosure requirements. Here’s what that means in practice, and how Crunchafi is building to solve it.

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What has changed under FRS 102

The FRC revised Section 20 to align more closely with IFRS 16, bringing significant changes to how leases are recognised, measured, and disclosed for entities in the UK and Ireland.

On-balance-sheet recognition

Most operating leases must now be recognised on the balance sheet as a right-of-use asset and corresponding lease liability. The old off-balance-sheet treatment for operating leases is gone for most entities.

Expanded lease definition

The revised standard brings a broader definition of what constitutes a lease, including many embedded leases within IT contracts and service agreements that were not previously captured under Section 20.

Increased disclosure requirements

Statutory accounts must now include materially expanded disclosure notes, covering maturity analyses, weighted average discount rates, and a reconciliation of the opening and closing lease liability balance.

Built for chartered accountancy firms

Crunchafi Lease Accounting is designed around the workflows of chartered accountancy firms managing compliance across multiple clients. That distinction matters.

Compliance confidence

Crunchafi produces compliant statutory accounts by automating calculations, disclosure notes, and reporting workflows. The outputs are consistent, traceable, and audit-ready, not dependent on whoever built the spreadsheet.

Efficiency during busy season

Crunchafi gives firms a repeatable, standardised workflow across every client with a lease. Whether you are managing five clients or fifty, the process is the same, and the time per engagement is materially lower.

Beyond spreadsheets

Crunchafi handles what breaks spreadsheets at scale: lease modifications, variable payment structures, remeasurement triggers, multi-currency arrangements, and the disclosure note preparation that eats hours every period.

Testimonials

What we’ve heard

Here’s why accounting and financial professionals choose Crunchafi.

"I've implemented a lot of software for the firm in my role. Crunchafi’s Lease Accounting software is without a doubt the easiest one I've implemented and the only one that didn't cause me at least some level of stress during the process. It simply made my life better from the start."

Brett B.

Director of Assurance, Perry & Associates CPAs

ProNexus knew that if clients tried to manually use spreadsheets, even for a small lease portfolio, it would be time consuming and introduce the risk of inaccuracies now and in the future.

Tepa moved off messy spreadsheets to Crunchafi, turning a slow, error-prone process into a centralized system that cut audit time from days to hours, improved accuracy, and reduced lease management costs by 50%.

"When researching different solutions, Crunchafi’s Lease Accounting software stood out because the workflow was simple and easy to follow, the implementation time was much faster, and they offer a help document to assist on the technical side."

Julie W.

Controller, Non-Profit Organization Management

Learn how Crunchafi's Lease Accounting software streamlined the lease accounting process and saved the firm valuable time.

This case study highlights how top 100 CPA firm PKF O'Connor Davies used LeaseCrunch to ensure quality and consistency while complying with ASC 842 and passing savings on to their clients.