Accounting for Leases: Identifying and Separating Components

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.