models1:
Supporting a leading model agency through changes to lease accounting
Models1 is a prestigious modelling agency, based in the UK and respected internationally for its work with brands and fashion houses.
We have supported its growth with accounts, corporate tax and advisory services.
As a leading business in its sector, with high-profile clients worldwide, accurate accounting is important for Models1.
As part of its move to new London premises in 2025, the business entered into a new lease in Clerkenwell. Upcoming changes to the UK’s FRS 102 accounting standards – effective from January 2026 and affecting how businesses account for operating leases by bringing them onto the balance sheet – were set to have an impact.
The challenge
Given the timing of the new lease, BKL recommended early adoption of the amended standard so the lease could be accounted for under the revised requirements from the outset. This was intended to avoid applying one accounting treatment in 2025 and revisiting it again when the amendments became compulsory.
Models1’s trusted contacts in our Accounts and Business Services team, together with our specialists in technical accounting and FRS 102, worked with the Models1 team to:
- Assess the implications of the amendments
- Identify the accounting impacts of early adoption
- Support the preparation of the enhanced disclosures required in the financial statements
We ensured that Models1 received clear guidance in plain English, supporting their transition to the new accounting standards and making it straightforward for the business to maintain in future reporting periods.
What we did
Models1 adopted the amendments to FRS 102 in its 31 December 2025 financial statements, ahead of the mandatory effective date.
Early adoption promoted consistency across accounting periods and avoided the need for further reconciliations when the FRS 102 amendments become compulsory.
By aligning the accounting treatment of the lease with the revised standard from day one, Models1 reduced the risk of future restatement while gaining greater visibility over how the lease would affect reported figures and disclosures in future financial statements.
Combining technical expertise with a proactive approach, we helped a well-established business to get the most out of a major accounting change at a key moment in their 50-year history.
If your business has entered into a significant lease ahead of the FRS 102 effective date, an early adoption assessment could help you to reduce future complexity.
Pauline Rendell
Managing Director, Models1
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