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Scope

See LG 2.6 for discussion on when to perform the determination as to whether an arrangement is a
lease.

2.3.1 Use of an identified asset

To meet the definition of a lease, an arrangement must require use of an explicitly or implicitly
identified asset that is physically distinct. Figure 2-1 highlights key considerations in determining
whether there is an identified asset. Each consideration is discussed further in the sections that follow.

Figure 2-1
Determining whether there is an identified asset

2-5