Finance Leasing Manual - FLM31.23

First condition: foreign accounting standards

A lessor which draws up its accounts in accordance with foreign accounting standards should not be asked to draw up a full set of accounts prepared under UK accounting standards. An assurance on this was given in the following extract from the article on Schedule 12 published in the April 1997 issue of Tax Bulletin:

`In the case of a lessor not subject to UK accounting standards, typically a company not registered in the UK, it is necessary to consider how leasing arrangements would be accounted for if UK standards did apply, both at individual company and group level. But it is not necessary to consider more widely what effect UK standards would have had on the accounting treatment or for accounts actually to be prepared under those standards. In other words, the legislation does not require a full set of accounts to be prepared under UK standards.`