Where a number of assets are subject to a single lease and those
assets have divergent economic lives, varying rates of depreciation
will be applied to each asset in the lessee's accounts. In applying
the approach in SP3/91 the rentals may be apportioned on a
systematic and reasonable basis to the various assets.
Where the lease of a non-depreciating building (see
BIM61170) also includes the fixtures in
it, and those fixtures are depreciated over the term of the lease
in accordance with correct accounting practice, the approach set
out above may be adopted: the depreciating and non- depreciating
elements may be dealt with separately so that relief can be
obtained for the fixtures which depreciate.
