ASC 842: Lease Component, non-lease component, non-component

The initial and subsequent measurement guidance in Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 842, Leases, applies only to lease components. So, after determining that a contract is or contains a lease, the lessee will need to identify the separate lease and non-lease components within the contract. A lease component is the right to use an underlying asset that meets the definition of a lease. A non-lease component transfers a good or service to the lessee that