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ASC 840 — Leases

Overview

The full text of ASC 840, Leases can be found in the FASB Accounting Standards Codification (link to the FASB's Web site; registration required). Also, the full text of the Codification and Deloitte-authored Q&As related to the Codification are available in the Deloitte Accounting Research Tool (DART) Web site (subscription required).

ASC 840 comprises four Subtopics (Overall, Operating Leases, Capital Leases, and Sale-Leaseback Transactions). Below is an overview of each Subtopic.

840-10 Overall

ASC 840-10 notes that it "establishes the classification criteria for all leases and provides accounting and financial reporting guidance that applies without regard to a lease's classification."

840-20 Operating Leases

ASC 840-20 notes that it "addresses accounting by lessees and lessors for leases that have been classified as operating leases in accordance with the guidance in Subtopic 840-10."

840-30 Capital Leases

ASC 840-30 notes that it "addresses accounting by lessees and lessors for leases that have been classified as capital leases in accordance with the guidance in Subtopic 840-10."

840-40 Sale-Leaseback Transactions

ASC 840-40 notes the following:

 

This Subtopic addresses accounting by lessees and lessors for sale-leaseback transactions.

Sale-leaseback transactions involve the sale of property by the owner and a lease of the property back to the seller.

Content from the FASB Accounting Standards Codification® included at http://www.usgaapplus.com is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission.

FASB Accounting Standards Updates

The following ASUs amended the guidance in this Topic:

Proposed FASB Accounting Standards Updates

No current proposed ASUs on Topic 840.

Related resources

See our comprehensive collection of news and publications related to leases.

International guidance

For the IASB's guidance on this topic, see IAS 17, Leases.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.