HMRC internal manual

Business Leasing Manual

BLM10015 - Lease accounting: accounting standards: relevant accounting standards

Lease accounting is primarily governed by Section 20 of FRS 102 for UK GAAP. Lease accounting under IFRS or FRS 101 is governed by IAS 17 for accounting periods beginning before 1 January 2019 or IFRS 16 for accounting periods beginning on or after 1 January 2019.

As explained at BLM00020 and BLM00205 IAS 17 is very similar to FRS 102. As a result this manually focusses on FRS 102 and IFRS 16. The differences between FRS 102 and IAS 17 are highlighted at BLM10020.

Neither FRS 102 nor IFRS 16 rely on other supplementary guidance or interpretations in determining the accounting for leases.

There are however other relevant standards that might apply to certain aspects of leasing transactions. As mentioned at [BLM10010](, the detail of these standards is outside the scope of this Manual and the following paragraphs only give a flavour of their effect.

Accounting for service concessions (FRS 5 Application note F, FRS 102 Section 34 and IFRIC 12) is covered at BLM20150.  These are transactions that have some similarities with leasing transactions but which should be accounted for as set out in those standards.