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One essential feature of a lease is that the underlying asset (ie the asset that is the subject of the lease) is 'identified'. This normally takes place through the asset being specified in a contract, or part of a contract.
An asset typically is identified by being explicitly specified in a contract. However, an asset also can be identified by being implicitly specified at the time that the asset is made available for use by the customer.
Leases versus services A lease transfers control over, some aspects of, an asset to the customer. In a service contract the supplier uses the asset to deliver the service, and retains control of that asset.
We will review any proposed agreement given to you and determine options, based upon both the independent value of your property to Verizon and the impact on your property. As well as how to best structure rent you will be paid under such agreement and other terms.
The equipment (personal property ) or real estate (real property) that is the subject of a lease and currently leased is a leased asset . In general, any identifiable, tangible and nonconsumable asset to which title can be held can be leased.
An identified asset can be a physically distinct part of a larger asset. For instance, IFRS 16 cites a building floor as a potential identified asset. Subsurface rights can also qualify.
The lessor is the legal owner of the asset or property, and he gives the lessee the right to use or occupy the asset or property for a specific period.
As per IFRS 16.9, a contract qualifies as a lease if it grants the right to control the use of an identified asset ('underlying asset') for a period of time in exchange for consideration.