Finance Leasing Manual - FLM10.03

Finance lessees: accountancy treatment: outline

This chapter outlines the principles that underpin the accounting practice, and illustrates these through two practical examples:

• Example 1 shows how the principles are converted into practice, as well as showing what typically happens if the underlying asset is sold - see FLM10.26 onwards;

• Example 2 considers the peculiar features of a lease where the primary period rentals are uneven - see FLM10.50 onwards.