BLM20130 | Defining long funding leases: basic definition: plant or machinery lease (CAA01/S70K)

The long funding lease rules only apply to leases of plant or machinery. The rules in CAA01/S70K use accountancy concepts to define a plant or machinery lease as

• an agreement or arrangement

• under which a lessor grants another person the right to use the plant or machinery for a period of time, and

• which is treated under GAAP as a lease (BLM20140),

• an agreement or arrangement which is treated under GAAP as a lease and conveys or would convey the right to use an asset which is plant or machinery (BLM20145), or

• the finance lease element of a sale and finance leaseback of plant or machinery (BLM20155).