In addition to the definition of leasing, FASB and IASB also discussed how to separate leasing and unleased elements in a contract and agreed to confirm to a large extent what was proposed in the 2013 risk plans. The definition of how elements of a contract should be separated and taken into account is important for companies that use leases for leasing. B of several consolidated assets, for example, a production facility that could include a factory, the land on which the building is located and the equipment it houses. If the agreement is documented as one of the agreements mentioned above, for example an air contract. B, the conditions described below should be checked to determine its accounting characterization. In the case of a cogeneration plant, the device produces several forms of energy, including electricity, heat, steam and hot water. The recipient of the service is responsible for supplying the fuel source to the device and therefore has the right to determine how much he or she wants to consume. Most of ENERGY`s cogeneration agreements contain a price element for cost-of-capital coverage, which emphasizes the fact that the underwriter has the right to change the flow of the facility. This is, of course, a reading that is part of a service contract. After more than an hour of debate, the chambers agreed on the general management to clarify the distinction between leases and service contracts, but did not opt for the text. They agreed to give researchers “flexibility” in developing new examples that take into account the observations of companies and board members.

CSA 842 is closely linked to the first set of IRC indicators. 7701 (e) which, for the most part, articulate the conditions that can be indicators that an agreement is not a service contract. If an agreement contains an asset, but the service contract tests are not completed, the agreement is probably a lease or loan under the tax code, and that part is treated as such from a tax point of view. Suppose a developer proposes to provide energy to a company and does not determine how that developer provides the energy. The developer can provide energy in different ways, for example through solar production, purchased by the grid or other developers and by cogeneration. The developer can even sublet the storage space on the energy buyer`s land to place his assets for the supply of energy. This type of agreement can increasingly appear as a service contract as a lease agreement. The question is whether such a scheme can be both economically viable and meet the buyer`s business requirements.