Accounting for Leases: Identifying and Separating Components
October 2021
In the second article in our
Accounting for Leases Under ASC 842 series,
Identifying a Lease, we discussed how to ensure a lease has been properly identified according to the FASB Master Glossary. Once an entity concludes that a contract is or contains a lease, the next step is to identify the components of the contract. Download the next article in our series to learn how.
What’s inside:
- When to apply ASC 842 or other GAAP.
- How to identify lease components.
- Key steps an entity should perform.
- Examples for identifying lease and nonlease components.
- Lessee guidelines for separating components.
- Lessor guidelines for separating components.
- Portfolio approach to ASC 842.
- Considerations for contract combination.