Finance Leasing Manual - FLM43.27

Bad debts: step rentals

The example at FLM43.23 assumes overdue rentals. But its relevance is not limited to that. If rentals are paid in arrears and the accounting date straddles two payments, then there will be an accrual from the date on which the previous payment arose. The problem may also arise because of the rental profile. See example at FLM43.28.