How do the revenue and the new lease standards interact?

How do the revenue and the new lease standards interact? #

Both in IFRS and U.S. GAAP the leasing and revenue standards are mutually exclusive. If a contract is wholly in the revenue standard it will be out of scope of the leasing standard, and vice versa. However, it is possible for a contract to have a component that is outside the scope of the applicable standard, within the scope of the other. In this situation, the separation and measurement guidance within the applicable standard should be applied.

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