I am about to compile the first set of statutory accounts for a company where they currently pay an annual rent for a property for which they have a circa 15 year lease. They did not pay anything to actually obtain the lease but they do pay a fixed amount on a quaterly basis towards the rent of the property that they have the lease for. The rent has been shown as an expense and the lease does not sit on the balance sheet. My question is that is it right for the property to not be indentified as an asset since they did not pay anything for it? Or should it sit on the balance sheet as an asset? The previous accountant did not specify it as an asset and let it pass as an operating expense. What is the common practice for property leases used for the purposes of using it say as an office, running a shop or a hotel under the FRS102 regime?