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A right-of-use lessee’s accounts will look significantly different to the accounts prepared under ²¹²Ô²âÌýprevious standards.â€� If the lessee previously had operating leases, those leases are now recognised on the balance sheet.â€�Ìý

The biggest change is in the treatment of property leases.â€� Under previous standards, most property leases would have been operating leases with the accrued rentals going through the profit and loss account.â€� All right-of-use assetsÌýareÌýreported on the balance sheet.â€� Property leases are not ±ð³æ±ð³¾±è³Ù.â€�Ìý

The Schedule 14 FA 2019 changes were designed to ensure that there is no tax advantage or disadvantage to lessees when they move to reporting right-of-use assets. The only change for tax could be timing differences arising from differences in how lessees under operating leases and right-of-use leases account for the cash rentals.� If you discover any situation where a lessee is accounting for right-of-use assets and there is an unexpected tax consequence, please contact BAI.