After identifying a lease, both the lessee and the lessor are required to separate the various lease and nonlease components and allocate consideration to these components.

Question

Quizplus · Accepted Answer

Both the lessee and the lessor must separate lease and nonlease components and allocate consideration to ensure accurate financial reporting and compliance with accounting standards like IFRS 16 and ASC 842.

After Identifying a Lease, Both the Lessee and the Lessor