Accounting for Leases: Identifying and Separating Components

October 2021

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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.