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HMRC internal manual

Business Leasing Manual

Introduction: Lease Accounting: Outline of lease accounting

The main leasing accounting standards are SSAP 21 (UK GAAP) and IAS 17 (IFRS and FRS101) and these are outlined in this section of the manual.

Also outlined in this section is FRS102 Section 20 (‘Leases’). This will apply to those UK GAAP entities adopting FRS102 in accounting periods beginning before 1 January 2015, and to all UK GAAP entities, other than those adopting FRS101, in accounting periods beginning on or after 1 January 2015.

SSAP 21 (UK GAAP) is supplemented by

  • FRS 5, see BLM10020 and BLM20150 
  • UITF 28, see BLM12025.
  • FLA SORP, see BLM10040 

FRS102 (UK GAAP) is self-contained: there is no supplementary guidance.

IAS 17 (IFRS and FRS101) is supplemented by

  • IFRIC 4, see BLM10025 
  • SIC 27, see BLM10035 
  • SIC 15, see BLM12025 
  • IFRIC 12, see BLM20150 
  • certain sections of IAS 39 and IFRS9, see BLM10045.

The basics of accounting for operating leases are described at BLM00210 and the basics of finance lease accounting are at BLM00215 onwards.

A more detailed description of operating lease accounting is given at BLM12000 onwards.

A more detailed description of finance lease accounting is given at BLM13000 onwards.