For titles of FASB Accounting Standards Codification (ASC) references, see Deloitte’s “Titles of Topics and Subtopics in the FASB Accounting Standards Codification.”
See ASC 842-10-15-3 through 15-5 for the definition of a lease.
See paragraph BC122 of FASB Accounting Standards Update No. 2016-02, Leases.
Paragraph 5(b) of IFRS 16 allows an entity not to apply IFRS 16 to “leases for which the underlying asset is of low value.” See paragraphs B3–B8 of the standard for information on how to assess whether an asset is of low value.
ASC 842-10-25-8 stipulates that an entity should account for a modification as a separate contract when both (1) the modification grants an additional right of use and (2) the lease payments associated with the additional right of use are commensurate with the stand-alone selling price.
Note that the requirement to allocate consideration to lease and nonlease components is only applicable if an entity has not elected the practical expedient to combine components under ASC 842-10-15-37.
See ASC 842-10-15-39.
See paragraph BC156 of ASU 2016-02.