F22 As noted in paragraph F19, in applying the FRS the key test is to establish who will bear any variations in property profits (or losses). Depending on the particular circumstances, a range of factors may be relevant to this assessment of profit variation. The principal factors that, depending on the particular circumstances, may be relevant are:
o demand risk (see paragraphs F24-F31)
o the presence, if any, of third-party revenues (see paragraphs F32-F34)
o who determines the nature of the property (see paragraphs F35-F37)
o penalties for under-performance or non-availability (see paragraphs F38 and F39)
o potential changes in relevant costs (see paragraphs F40 and F41)
o obsolescence, including the effects of changes in technology (see paragraphs F42 and F43)
o the arrangements at the end of the contract and residual value risk (see paragraphs F44-F48).
F23 The above list of the factors to be considered should be applied only with reference to the analysis given in paragraphs F24-F50. The key features of the analysis are summarised and illustrated in the table at the end of this Application Note.