The date on which a lessor makes an underlying asset available for use by a lessee

the period over which an asset is expected to be economically usable by one or more users or the number of production or similar units expected to be obtained from an asset by one or more users

The date when both parties agree to a lease modification

For the purpose of applying the lessor accounting requirements in this Standard, the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction

A lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset

Payments made by a lessee to a lessor for the right to use an underlying asset during the lease term, excluding variable lease payments

The sum of:

• The lease payments receivable by a lessor under a finance lease; and

• Any unguaranteed residual value accruing to the lessor

The earlier of the date of a lease agreement and the date of commitment by the parties to the principal terms and conditions of the lease

Incremental costs of obtaining a lease that would not have been incurred if the lease had not been obtained, except for such costs incurred by a manufacturer or dealer lessor in connection with a finance lease.

The rate of interest that causes the present value of (a) the lease payments and (b) the unguaranteed residual value to equal the sum of (i) the fair value of the underlying asset and (ii) any initial direct costs of the lessor

A contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration

Payments made by a lessor to a lessee associated with a lease, or the reimbursement or assumption by a lessor of costs of a lessee

A change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease (for example, adding or terminating the right to use one or more underlying assets, or extending or shortening the contractual lease term)

Payments made by a lessee to a lessor relating to the right to use an underlying asset during the lease term, comprising the following:

• Fixed payments (including in-substance fixed payments), less any lease incentives;

• Variable lease payments that depend on an index or a rate;

• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and

• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

For the lessee, lease payments also include amounts expected to be payable by the lessee under residual value guarantees. Lease payments do not include payments allocated to non-lease components of a contract, unless the lessee elects to combine non-lease components with a lease component and to account for them as a single lease component.

For the lessor, lease payments also include any residual value guarantees provided to the lessor by the lessee, a party related to the lessee or a third party unrelated to the lessor that is financially capable of discharging the obligations under the guarantee. Lease payments do not include payments allocated to non-lease components.

The non-cancellable period for which a lessee has the right to use an underlying asset, together with both:

• Periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and

• Periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option.

An entity that obtains the right to use an underlying asset for a period of time in exchange for consideration

The rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment

An entity that provides the right to use an underlying asset for a period of time in exchange for consideration

The gross investment in the lease discounted at the interest rate

A lease that does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset

The total period of time that an asset is used to fulfil a contract with a customer (including any non-consecutive periods of time)

A guarantee made to a lessor by a party unrelated to the lessor that the value (or part of the value) of an underlying asset at the end of a lease will be at least a specified amount

An asset that represents a lessee’s right to use an underlying asset for the lease term

A lease that, at the commencement date, has a lease term of 12 months or less. A lease that contains a purchase option is not a short-term lease.

A transaction for which an underlying asset is re-leased by a lessee (“intermediate lessor”) to a third party, and the lease (“head lease”) between the head lessor and lessee remains in effect

An asset that is the subject of a lease, for which the right to use that asset has been provided by a lessor to a lessee

That portion of the residual value of the underlying asset, the realization of which by a lessor is not assured or is guaranteed solely by a party related to the lessor

The portion of payments made by a lessee to a lessor for the right to use an underlying asset during the lease term that varies because of changes in facts or circumstances occurring after the commencement date, other than the passage of time