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Lease accounting should be applied at the lowest component level. At inception, a lessee should consider whether the lease contains more than one component. The separate lease components are determined by considering the nature and interdependency of the individual assets covered by the arrangement. If the leased assets are functionally independent of one another, the arrangement includes multiple lease components. Refer to section 2.5 in our Leases guide for more information.
Question 1.1: Are there accounting considerations as a result of the determination that a lease has more than one lease component?
Answer 1.1: Yes. If the lessee determines that the lease has more than one lease component, the lessee will need to determine if the lease components should be included in different asset groups for purposes of testing for impairment; see Q&A 2.1. For further considerations on lease components, see Q&As 7.1 and 7.4. For considerations regarding nonlease components, see Q&A 9.1.

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