FRS 102 Software
Built for the UK & Ireland
Get ready for the revised FRS 102 Section 20 (Leases)—effective for periods beginning on or after 1 January 2026 (early adoption permitted). The update moves most lessee leases on‑balance sheet, aligning with IFRS 16 while keeping proportionate simplifications.
Cradle automates right‑of‑use (ROU) assets, lease liabilities, journals, remeasurements, disclosures, and audit evidence—so month‑end is faster and audit evidence is easy to follow and verify.
Effortless Compliance
Why Cradle for FRS 102
Purpose-built for Section 20
Cradle supports the single-lessee model in FRS 102 Section 20, including the available reliefs for short-term and low-value leases. The system makes it easy to apply these exceptions correctly and consistently—reducing spreadsheet effort while maintaining full compliance.
Discount rates made practical
Cradle’s built-in discount rate calculator determines the interest rate implicit in the lease (IRIL) automatically—solving for the rate that equates lease payments and asset value, and documenting each step for audit support.
When the implicit rate can’t be readily determined, Cradle lets you set and justify an incremental borrowing rate (IBR), an obtainable borrowing rate (OBR), or any other approved rate, with full transparency and traceable rationale.
Transition without the scramble
Move to FRS 102 with confidence using the modified retrospective (simplified) approach—no restatement of comparatives required.
Lessor & lessee in one system
Manage both sides of your lease portfolio—including subleases—in one platform. Cradle keeps lessor accounting consistent (largely unchanged under the amendments) and gives finance teams full visibility with built-in controls and audit-ready reporting.
In short
Cradle takes the complexity out of FRS 102 Section 20 by automating the hard parts—discount rates, journals, remeasurements, disclosures, and audit evidence—so your month-end is faster, your data consistent, financials accurate and and your audit trail fully traceable.
Journals Do the accounting in minutes
Automated journals
Cradle generates accurate lease journals for depreciation, interest, and adjustments—ready for upload to your GL. Each calculation is supported by a detailed downloadable schedule, so you can review, analyse, and reconcile every number with confidence.
Intuitive workflow
We mirror Section 20’s logic so steps make sense: initial recognition → modifications → reporting. Built‑in validations flag issues early and keep your portfolio clean.
Modification & remeasurement
Changes in scope, payments linked to an index, incentives, CPI changes, term updates and more are handled in a guided flow—every revision is tracked with a full audit log.
Financial Statements
Reporting you can trust
(and rerun any time)
- Financial statements: Balance sheet, income statement, cash flow, and disclosures specific to FRS 102 Section 20.
- Any calendar, any period: Because calculations are performed to the day, you can run reports for 4‑4‑5 (or any pattern), custom ranges, and cut‑offs.
- Consolidated views: Roll up by agreement, entity, or group—instantly.
- Forecasting: Project liability run‑off, interest vs. principal, and cash flows by activity.
Complete offering
Built‑in flexibility for your operations
Custom fields & search
Capture portfolio data that matters to you—locations, cost centres, landlord meta‑data, equipment IDs—then filter, stratify, and export.
User permissions that map to your org
Replicate your parent‑subsidiary structure. Grant read‑only, company, and admin roles across entities to keep control while moving faster.
Custom reporting
Assemble the exact view you need and save it.
Security & audit trail
Cradle is SOC 2 Type II compliant, with enterprise-grade security, role-based access controls, and detailed activity logs that keep your data protected and your audit trail complete.
Ease of use
Transition to FRS 102 with confidence
- Modified retrospective, simplified: Measure the lease liability at the present value of remaining payments using the implicit rate, IBR, or OBR. Measure the lease liability at the present value of remaining payments and recognise a right-of-use asset as permitted under the transition options—without restating prior periods.
- Early adoption support: See how the new standard affects your results before your first mandatory period—no surprises at go-live.
- Robust calculation engine: We sweat the details (including day‑count conventions). Numbers reconcile down to the cent and can be exported to Excel for your own recalcs or for the audit file.
Prefer a white‑glove rollout? Contact us on how we can help to import from Excel or other systems, configure your chart‑of‑accounts mapping, and validate sample contracts before go‑live.
Features
Everything you need for FRS 102
Streamline your FRS 102 lease accounting with automation that handles high-volume, manual, and error-prone tasks. Simply enter your lease details and accounting judgments—Cradle does the rest with a single click.
- Built for Every Lease Portfolio
- Whether you manage straightforward leases or complex arrangements with frequent modifications, Cradle’s architecture is engineered to handle even the most intricate edge cases reliably and efficiently.
- Simplify and Standardize Reporting
- Gain consistency across your organization with role-based permissions, uniform calculations, and full modification tracking. Cradle ensures your lease accounting and portfolio management are accurate, compliant, and easy to audit.
- Seamless Integration
- Cradle is designed to complement your existing financial ecosystem. Mirror your general ledger structure and export data effortlessly—saving time while maintaining control.
- Reporting, Instantly
- You can run reports at any level—by agreement, company, parent entity, or based on your own criteria such as asset classes, portfolios, or other segments.
- Foreign Exchange (FX) Made Easy
- Enhance accuracy and efficiency when dealing with leases in foreign currencies. Enter exchange rates and let Cradle do the work.
- Beyond Accounting: Lease Management Tools
- Cradle isn’t just for accounting—it has lease management tools built in. Customize data fields to your organization’s needs, set reminders for key dates, and ensure critical milestones are never missed.
- Centralized Documentation
- Keep every lease document, note, and attachment in one organized location.
FAQ
When do the new FRS 102 lease rules take effect?
For periods beginning on or after 1 January 2026; early adoption is allowed. KPMG
Do short‑term and low‑value leases stay off balance sheet?
The revised Section 20 provides reliefs for short‑term and low‑value leases; low‑value is principles‑based (no fixed monetary threshold). PKF
Which discount rate should I use?
Use the implicit rate if readily determinable—Cradle can do this automatically; otherwise you may use the IBR or the OBR—a simplified rate defined by FRS 102 that’s often easier to support. PWC
How does transition work?
Lessees use the modified retrospective (Just select 'Simplified' in Cradle) approach under FRS 102. Leases are brought on-balance-sheet from the transition date only; prior periods are not restated. BDO UK
See How Easy FRS 102 Can Be
Get a live demo to see your portfolio in Cradle, or start a free trial and experience how quickly you can post your first month of journals.
