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Lease components

Lease componentsThe unit of account for Lease accountingIFRS 16 September challenges 11 At a glance Key facts Key impacts 32 Identifying separate Lease components Combining contracts Separate Lease components Lessors Additional considerations for land and buildings Portfolio approach 143 Identifying non- Lease components Non- Lease components Practical expedient for lessees Combining Lease and non- Lease components 204 Allocating the consideration Contract consideration Allocation of consideration Lessor allocation Lessee allocation Allocation of variable consideration 375 Reallocating the consideration Modification of contracts Remeasurement of Lease payments 45 Appendix I IFRS 16 at a glance 52 Appendix II List of examples 53 About this publication 55 Keeping in touch 56

3 Identifying non-lease components 16. 3.1 Non-lease components 16 3.2 Practical expedient for lessees – Combining lease and non-lease components 20. ... separately for each class of underlying asset. Applying the practical expedient will generally simplify application of the new standard – but when payments are fixed, ...

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