Operating lease disclosures

Operating lease disclosures

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Two questions

One - when there is a commitment due to expire within one year, do you disclose in the notes the ANNUAL commitment, or just the amount that you have to pay?

Two, is this net of VAT?

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Euan's picture
By Euan MacLennan
15th Jan 2014 14:37

Operating lease disclosure
The requirement set out in FRSSE 7.17 is that "the lessee shall disclose the payments that it is committed to make during the next year", so it is just the rent actually payable up to the expiry of the lease.If you are on the FRS for VAT and are therefore showing expenses gross in the accounts, it would be the gross payment, but in most cases, it would be the amount net of VAT.

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