The Statement of Recommended Practice (SORP) issued by the
Finance and Leasing Association provides guidance on how the UK
GAAP requirements of SSAP 21 and FRS 5 can be best interpreted by
lessors. The SORP was developed in accordance with the Accounting
Standard Board’s code of practice and is not considered to
contain material that conflicts with existing UK GAAP accounting
standards. The intention of the SORP is to supplement the existing
accounting framework and it should be read in conjunction with the
existing standards.
New accounting standards may be developed and any new
requirements will take preference over the guidance contained in
the SORP where conflicts arise
