AASB 16 Leases 12-17,B32-B33: Separate lease components from non-lease components, allocating consideration on relative stand-alone prices (lessee) or under AASB 15 (lessor), unless the lessee elects by class to combine them

What does 12-17,B32-B33 require?

Each lease component in a contract is accounted for separately from non-lease components. A right to use an asset is a separate lease component when the lessee can benefit from it alone or with readily available resources and it is not highly dependent on, or interrelated with, other rights in the contract. A lessee allocates the consideration pro rata to the stand-alone price of each lease component and the non-lease elements' combined stand-alone price, using the separate price the lessor, or a comparable supplier, would charge, estimated with maximum use of observable inputs where no observable price exists; administrative tasks and activities that transfer nothing to the lessee are not separate components. By class of underlying asset a lessee may elect to treat each lease component together with its associated non-lease components as one lease component, except for embedded derivatives separated under AASB 9. A lessor allocates consideration using the AASB 15 allocation rules.