# ASC 842-10-05: Leases — Overall — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/842/10/#05-overview-and-background)

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## ASC 842-10-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/842/10/#05-overview-and-background)

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##### [842-10-05-1](https://asc.understandingaccounting.org/asc/842/10/#842-10-05-1)

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The [Leases](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.") Topic includes the following Subtopics:

1.  a
    
    Overall
    
2.  b
    
    [Lessee](https://asc.understandingaccounting.org/glossary/l/#lessee "An entity that enters into a contract to obtain the right to use an underlying asset for a period of time in exchange for consideration.")
    
3.  c
    
    [Lessor](https://asc.understandingaccounting.org/glossary/l/#lessor "An entity that enters into a contract to provide the right to use an underlying asset for a period of time in exchange for consideration.")
    
4.  d
    
    Sale and Leaseback Transactions
    
5.  e
    
    [Leveraged Lease](https://asc.understandingaccounting.org/glossary/l/#leveraged-lease "From the perspective of a lessor, a lease that was classified as a leveraged lease in accordance with the leases guidance in effect before the effective date and for which the commencement date is before the effective date.") Arrangements

##### [842-10-05-2](https://asc.understandingaccounting.org/asc/842/10/#842-10-05-2)

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The Subtopics listed in paragraph [842-10-05-1](https://asc.understandingaccounting.org/asc/842/10/#842-10-05-1) establish the requirements of financial accounting and reporting for lessees and lessors.