Finance Leasing Manual - FLM12.65

Depreciation method used

Commercial depreciation is arrived at in accordance with SSAP12 (Accounting for depreciation), as slightly modified for leased assets by SSAP21. This is very much an accountancy issue but one which can have significant tax effects. Particular lines of enquiry which may be worth considering are mentioned at FLM12.66. But in all cases early input from your liaison accountancy unit is important.