BLM23050 - Defining long funding leases: commencement and transition: pre-existing heads of agreement: lessee's side, lessor's side and lessee
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.
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The term 'lessee's side' is defined in FA06/SCH8/PARA27 to mean
- the lessee,
- a person who controls (or is to control) the lessee,
- any two or more persons who together control (or are to control) the lessee.
The 바카라 사이트˜lessor바카라 사이트™s side바카라 사이트™ is defined in similar terms.
This means that there may be a pre-existing heads of agreement when neither the lessor nor the lessee yet exists.
However, the lessee must be identified precisely as a particular (unique) entity. A description such as 바카라 사이트˜a wholly owned subsidiary of 바카라 사이트¦바카라 사이트™ does not by itself identify a particular lessee because there could be more than one wholly owned subsidiary.
The lessor does not have to be identified precisely. This means that a lessor group could set up or identify a special purpose vehicle to act as lessor subsequent to the pre-existing heads of agreement.