Wiley GAAP: Financial Statement Disclosure Manual

55ASC 840 LEASES¹

1. Authoritative Literature
   1. Technical Alert
   2. Subtopics
   3. Scope and Scope Exceptions
   4. Variable Interest Entities
   5. Lease or Sale—The Interplay of Lease and Revenue Recognition Accounting
      1. ASC 840‐10‐35, Determining Whether an Arrangement Contains a Lease
      2. Sales with a Guaranteed Minimum Resale Value
   6. Lessee Classification
   7. Lessor Classification
      1. Distinctions Among Sales‐Type, Direct Financing, and Leveraged Leases
2. Presentation and Disclosure Requirements
3. Presentation and Disclosure Examples
   1. Example 55.1: Accounting Policy—Depreciation of Leased Property Under Capital Leases
   2. Example 55.2: Accounting Policy for Leases
   3. Example 55.3: Leases—Accounting Policy and Description of Leases
   4. Example 55.4: Operating Lease Expense
   5. Example 55.5: Capitalized Lease Obligations

AUTHORITATIVE LITERATURE

Technical Alert

See the chapter on ASC 842, Leases, for information on the new standard on leases.

Subtopics

ASC 840, Leases, and its subtopics establish standards of accounting and reporting by lessees and lessors for leases overall, and for specific classifications of leases. ASC 840 contains four Subtopics:

• ASC 840‐10, Overall
• ASC 840‐20, Operating Leases
• ASC 840‐30, Capital Leases
• ASC 840‐40, Sale‐Leaseback Transactions

Each of the Subtopics contains the following Subsections:

• General
• Lessees
• Lessors

Scope and Scope Exceptions

ASC 840 applies to all entities. However, to be considered a lease the right to use property, plant, or equipment must be transferred from one ...