Separating Lease and Nonlease Components

May 24, 2017 at 7:18 AM / by Ane Ohm posted in Lease Components, FASB, New Lease Standard, Lease Payments, IFRS

Identifying lease and nonlease components

Not all costs related to a lease are included in the leased asset and liability. For example, a lessor may lease a truck and also include a provision to operate the truck on behalf of the lessee. Providing a driver, maintenance and gas are not related to securing the use of the truck and these costs would be considered nonlease components. Another example of a nonlease component is the fee for common area maintenance when renting office space.

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