BLM15500 - Lease accounting: finance lease accounting: finance lessees: example 1: contents

This manual is being updated to reflect FRS 102 (2024 amendments). For guidance on the tax treatment of accounts prepared under IFRS 16 or the revised FRS 102, please refer to pages within the BLM50000 chapter.

  1. BLM15505
    Basic rental structure
  2. BLM15510
    Is this a finance lease?
  3. BLM15515
    Apportioning the rentals
  4. BLM15520
    Allocating the ‘interest element’ and the ‘capital element’
  5. BLM15525
    The accounting entries
  6. BLM15530
    Value of assets and liabilities in balance sheet
  7. BLM15535
    Accounting entries when the ‘loan’ is repaid
  8. BLM15540
    Lease terminated early
  9. BLM15545
    Lease terminated early - entries in lessee’s accounts
  10. BLM15550
    Lease terminated early - reconciliation of lessee’s cash outlay