ASC 840-958
Not-for-Profit Entities
840 Leases
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ASC 840-958 was the not-for-profit-specific guidance within the legacy leases topic (ASC 840), addressing how NFP entities applied lease accounting. Every remaining paragraph in this subtopic (05-1, 15-1, and 55-1 through 55-4) has been superseded by Accounting Standards Update No. 2016-02, so the subtopic contains no operative guidance. NFP lessees and lessors now follow ASC 842, including its NFP-specific provisions.
Key points (4)
- All content of this subtopic—overview (840-958-05-1), scope (840-958-15-1), and implementation guidance (840-958-55-1 through 55-4)—was superseded by Accounting Standards Update No. 2016-02.
- Because no paragraphs remain in force, ASC 840-958 imposes no current recognition, measurement, presentation, or disclosure requirements.
- ASU 2016-02 replaced ASC 840 with ASC 842, which governs lease accounting for not-for-profit entities going forward.
- The subtopic is retained in the Codification only as a shell showing superseded paragraph numbers, useful for tracing historical guidance and comparative-period reporting under legacy GAAP.
For students. Don't cite ASC 840-958 as live authority—ASU 2016-02 superseded all of it; NFP lease questions are answered under ASC 842. The common mistake is assuming an empty Codification subtopic still contains special NFP lease rules.
Machine-generated study aid for ASC 840-958. Check the source paragraphs below.
840-958-00Status
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| Paragraph | Action | Accounting Standards Update | Date |
| Bargain Purchase Option | Superseded | Accounting Standards Update No. 2016-02 | 02/25/2016 |
| Bargain Renewal Option | Superseded | Accounting Standards Update No. 2016-02 | 02/25/2016 |
| Indirectly Related to the Leased Property | Superseded | Accounting Standards Update No. 2016-02 | 02/25/2016 |
| Lease Term | Superseded | Accounting Standards Update No. 2016-02 | 02/25/2016 |
| Noncancelable Lease Term | Superseded | Accounting Standards Update No. 2016-02 | 02/25/2016 |
| Penalty | Superseded | Accounting Standards Update No. 2016-02 | 02/25/2016 |
| 958-840-05-1 | Superseded | Accounting Standards Update No. 2016-02 | 02/25/2016 |
| 958-840-15-1 | Superseded | Accounting Standards Update No. 2016-02 | 02/25/2016 |
| Superseded | Accounting Standards Update No. 2016-02 | 02/25/2016 |
840-958-05Overview and Background
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840-958-15Scope and Scope Exceptions
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840-958-55Implementation Guidance and Illustrations
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