# ASC 840-980: Leases — Regulated Operations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/840/980/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:55:18.640Z to 2026-09-10T01:55:41.940Z Record version: sha256:f8f90b0ad83536b8101a344311a42980cd04afbc691d679e67e7fcacddd1b494 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 840-980: Leases — Regulated Operations ### Machine-generated study aids ```json { "summary": "This subtopic formerly provided lease guidance specific to regulated operations (rate-regulated utilities) under the old lease model in ASC 840 — for example, how capital lease accounting interacted with regulator-prescribed rate-making treatment. Every paragraph in every section (05, 15, 25, 35, 45, 55) has been superseded by ASU 2016-02 (Leases (Topic 842)), so the subtopic contains no operative guidance. Lessees and lessors in regulated operations now apply ASC 842, together with the regulated-operations guidance in ASC 980 (including ASC 842-10 and 980-340/980-405 concepts on regulatory assets and liabilities).", "key_points": [ "All paragraphs of 840-980 (840-980-05-1, 15-1, 25-1 through 25-3, 35-1 and 35-2, 45-1 through 45-4, and 55-1) are marked 'superseded by Accounting Standards Update No. 2016-02,' leaving no effective guidance in the subtopic.", "ASU 2016-02 replaced Topic 840 with Topic 842, so lease transactions of rate-regulated entities are analyzed under ASC 842's right-of-use asset/lease liability model rather than the former capital/operating lease distinction.", "Entities that have adopted ASC 842 should not cite 840-980; it is retained in the Codification only as a historical marker of superseded text.", "Rate-regulated entities continue to consider whether the difference between GAAP lease cost and amounts allowed for rate-making purposes gives rise to a regulatory asset or regulatory liability under Topic 980.", "Because Topic 840 remains relevant only for periods before adoption of ASU 2016-02, this subtopic can matter for comparative or legacy-period financial statements and transition analysis." ], "categories": [ "Leases", "Industry-specific", "Transition and effective dates" ], "audience_level": "intermediate", "student_note": "Exam-wise, the only thing to know here is that this subtopic is fully superseded by ASU 2016-02 — the common mistake is citing 840-980 for a utility lease question instead of ASC 842 plus the regulatory asset/liability guidance in Topic 980.", "related_topics": [ "842", "842-10", "980", "980-340", "980-405", "840" ], "key_concepts": [ "superseded guidance", "regulated operations", "rate-regulated utility", "capital lease", "right-of-use asset", "regulatory asset", "lease transition" ] } ``` Source downloaded (UTC): 2026-09-10T01:55:18.640Z to 2026-09-10T01:55:18.640Z Record version: sha256:d3d4f327b61fb306fb65edeee03b392feda376f29fde21d6134b20844d2bef64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 840-980-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/840/980/#00-status) SEC content: no ##### [840-980-00-1](https://asc.understandingaccounting.org/asc/840/980/#840-980-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:18.640Z to 2026-09-10T01:55:18.640Z Record version: sha256:6769607a6be9791d4b229b28dc35683d21f3e1e4aaff88711c78120376da9820 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Allowable CostsSupersededAccounting Standards Update No. 2016-0202/25/2016
Phase-In PlanSupersededAccounting Standards Update No. 2016-0202/25/2016
980-840-05-1SupersededAccounting Standards Update No. 2016-0202/25/2016
980-840-15-1SupersededAccounting Standards Update No. 2016-0202/25/2016
980-840-25-1 through 25-3
SupersededAccounting Standards Update No. 2016-0202/25/2016
980-840-35-1SupersededAccounting Standards Update No. 2016-0202/25/2016
980-840-35-2SupersededAccounting Standards Update No. 2016-0202/25/2016
980-840-45-1 through 45-4
SupersededAccounting Standards Update No. 2016-0202/25/2016
980-840-55-1AmendedMaintenance Update 2016-11 (PDF)06/27/2016
980-840-55-1SupersededAccounting Standards Update No. 2016-0202/25/2016
Source downloaded (UTC): 2026-09-10T01:55:21.818Z to 2026-09-10T01:55:21.818Z Record version: sha256:4a2837c3ea67a73e1845cb022ef19224d57a273e97cc6c0190f0b6094431c1a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 840-980-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/840/980/#05-overview-and-background) SEC content: no ##### [840-980-05-1](https://asc.understandingaccounting.org/asc/840/980/#840-980-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:21.818Z to 2026-09-10T01:55:21.818Z Record version: sha256:b76a4ba7b2a45f3b1ac7d66b9140b0a2aac5fee6b8dc40f46802203dbeb3cab1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) Source downloaded (UTC): 2026-09-10T01:55:23.495Z to 2026-09-10T01:55:23.495Z Record version: sha256:98a7ea97fdcb3b8058f2e7df38820ca48a4b7885889a3d7fc097cdebc2220e4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 840-980-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/840/980/#15-scope-and-scope-exceptions) SEC content: no ##### [840-980-15-1](https://asc.understandingaccounting.org/asc/840/980/#840-980-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:23.495Z to 2026-09-10T01:55:23.495Z Record version: sha256:fef0fb4a76c025afb645af633d5e635436023812ea5f03ca5a2bf78ce844f7f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) Source downloaded (UTC): 2026-09-10T01:55:30.136Z to 2026-09-10T01:55:30.136Z Record version: sha256:b4d25d76cef85a9df9c85071ddf40feabb77befb40eaa25065c4bacc1af20960 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 840-980-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/840/980/#25-recognition) SEC content: no ##### [840-980-25-1](https://asc.understandingaccounting.org/asc/840/980/#840-980-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:30.136Z to 2026-09-10T01:55:30.136Z Record version: sha256:85d5879f32d6e1c71396bebe836b1853eadf3cece5113b6a602418a06da089f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) ##### [840-980-25-2](https://asc.understandingaccounting.org/asc/840/980/#840-980-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:30.136Z to 2026-09-10T01:55:30.136Z Record version: sha256:15d9eba3f39720e3ce626980198030d6183d116c5ad950e3d5890ed5d96ef686 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) ##### [840-980-25-3](https://asc.understandingaccounting.org/asc/840/980/#840-980-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:30.136Z to 2026-09-10T01:55:30.136Z Record version: sha256:0d432773c2e1c5f8d4426ac717379b2e9ea5833317d4fef2f72a03faf8e3671d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) Source downloaded (UTC): 2026-09-10T01:55:32.794Z to 2026-09-10T01:55:32.794Z Record version: sha256:21c27fd4115f43c986b9cd9fab31fe4ed795fbc9bdccbc80f1e3353104d3c202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 840-980-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/840/980/#35-subsequent-measurement) SEC content: no ##### [840-980-35-1](https://asc.understandingaccounting.org/asc/840/980/#840-980-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:32.794Z to 2026-09-10T01:55:32.794Z Record version: sha256:6f5b26097085e92ecc27b5995625d9a29f36ce591229edc7c2050525b1713d60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) ##### [840-980-35-2](https://asc.understandingaccounting.org/asc/840/980/#840-980-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:32.794Z to 2026-09-10T01:55:32.794Z Record version: sha256:4a563eeab349d0c6442e850b30a1e5b9703177a659ddd0a61ef4494c8b8bc83a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) Source downloaded (UTC): 2026-09-10T01:55:35.110Z to 2026-09-10T01:55:35.110Z Record version: sha256:f0c8958d5acec9cb366088be6c9c542edf0b923761bb4e82cf67ef5bfe99162f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 840-980-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/840/980/#45-other-presentation-matters) SEC content: no ##### [840-980-45-1](https://asc.understandingaccounting.org/asc/840/980/#840-980-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:35.110Z to 2026-09-10T01:55:35.110Z Record version: sha256:68c7bf83deef1d319cda26e133598a171fc52f2c386db74649375fd463e68d96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) ##### [840-980-45-2](https://asc.understandingaccounting.org/asc/840/980/#840-980-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:35.110Z to 2026-09-10T01:55:35.110Z Record version: sha256:2a70fabc92b2cbe0daf05881f1f24f34856dd0fcb8dbd6917fa4dc09e11d4c1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) ##### [840-980-45-3](https://asc.understandingaccounting.org/asc/840/980/#840-980-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:35.110Z to 2026-09-10T01:55:35.110Z Record version: sha256:97ba841a1de5219bf608562c440292690bea6e3452e875d2aa417a34e23eb34e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) ##### [840-980-45-4](https://asc.understandingaccounting.org/asc/840/980/#840-980-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:35.110Z to 2026-09-10T01:55:35.110Z Record version: sha256:b5523d0e27d5a4bd99f93fd46294a5d830ac9b213d8249380fd2b9f582ed7c13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/) Source downloaded (UTC): 2026-09-10T01:55:38.122Z to 2026-09-10T01:55:38.122Z Record version: sha256:5ecb03fe66a318b67a8502f1888ee5ffeab27d54b4284bdfd615761e0c5b6e58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 840-980-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/840/980/#55-implementation-guidance-and-illustrations) SEC content: no ##### [840-980-55-1](https://asc.understandingaccounting.org/asc/840/980/#840-980-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:55:38.122Z to 2026-09-10T01:55:38.122Z Record version: sha256:947b89c3d33182a461d3c36d11491ade6fcaa0210df591e2e20b856b820ea701 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/)