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Leases versus services The Standard distinguishes between a lease and a contract for 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.

For example, a tenant and landlord may agree to a five-year lease with a five-year option to renew. At the end of the first five years, the tenant is given the chance to continue the lease for another five years. If you think you may renew, be sure to bring up extension provisions with your landlord.

What Are Examples of Assets? Personal assets can include a home, land, financial securities, jewelry, artwork, gold and silver, or your checking account. Business assets can include such things as motor vehicles, buildings, machinery, equipment, cash, and accounts receivable.

Examples of identifiable assets are buildings, computer equipment, machinery, office equipment, and vehicles. Intangible assets can also be considered identifiable assets.

Because not all assets on a company's balance sheet are able to be quickly and accurately valued at a point in time, only those which are may be classified as identifiable. Examples include cash, short-term liquid investments, property, inventories, and equipment, among others.

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.

A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.

Identifiable intangible assets are those that can be separated from other assets and can even be sold by the company. They are assets such as intellectual property, patents, copyrights, trademarks and trade names. Unidentifiable intangible assets are those that cannot be physically separated from the company.