Right to modify the cosmetic appearance of the asset is an example of a decision-making right. This right indicates a degree of control over the asset's design or presentation, which can be significant in certain contract arrangements. According to the principles of identifying control in a contract, such rights may demonstrate a level of involvement in the asset's utilization that could be indicative of a lease or a similar form of control. However, it's important to note that the right to modify the cosmetic appearance, maintain the asset during output production, change where the output is produced, or even to operate the asset, would typically be considered in the context of the relevant contract and the specific terms agreed upon by the parties involved. These rights would be evaluated within the broader context of the contract to determine whether they convey control or significant influence over the asset in question.
Understanding Decision-Making Rights in Leases: Asset Control & Contract Accounting
Which of the following is an example of a decision-making right?
Right to modify the cosmetic appearance of the asset
Right to maintain the asset during output production
Right to change where the output is produced
Right to operate the asset