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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.

This page will be archived on 30 November 2025

Conditions B, C and D in BLM23030 are treated as met where they are not met only because

• the event is abnormal or unusual,
• the event is unforeseen, and could not reasonably have been foreseen, at the date when the main contract for the construction of the leased asset is entered into,
• the event is beyond the control of each of the principal parties, and
• as respects the Condition in question, the consequences of the event could not have been avoided by the exercise of all due care, or the taking of all reasonable steps, by the principal parties or any of them.

»Ê¹ÚÌåÓýapp ‘principal partiesâ€� are the lessor's side, the lessee's side and the contractor under the main contract for the construction of the plant or machinery.

An example of an event that might be both unforeseen and beyond the control of the parties is a strike or the sinking of a ship carrying materials to be used in the construction of the asset delaying construction.

Such events are also unlikely to be able to have been avoided by any of the principal parties.

Cases of doubt or difficulty should be referred to CS&TD after having obtained any relevant explanations and documents.