BLM15065 - Lease accounting: finance lease accounting: finance lessees: apportionment of rents using straight line method
This manual is being updated to reflect FRS 102 (2024 amendments). For guidance on the tax treatment of accounts prepared under IFRS 16 or the revised FRS 102, please refer to pages within the BLM50000 chapter.
This page will be archived at the end of February 2026.
Using this method the total finance charges are allocated evenly over the term of the lease. In practice, and assuming the asset is depreciated on a straight line basis, this means that the total rentals are allocated evenly over the term of the lease.
An example is in BLM15635.