{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/842/10/#25-recognition","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"842","topic_title":"Leases","subtopic":"842-10","subtopic_title":"Overall","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Lease Classification","paragraphs":[{"citation":"842-10-25-1","para":"25-1","html":"
An entity shall classify each separate lease component at the commencement date. An entity shall not reassess the lease classification after the commencement date unless the contract is modified and the modification is not accounted for as a separate contract in accordance with paragraph 842-10-25-8. In addition, a lessee also shall reassess the lease classification after the commencement date if there is a change in the lease term or the assessment of whether the lessee is reasonably certain to exercise an option to purchase the underlying asset. When an entity (that is, a lessee or lessor) is required to reassess lease classification, the entity shall reassess classification of the lease on the basis of the facts and circumstances (and the modified terms and conditions, if applicable) as of the date the reassessment is required (for example, on the basis of the fair value and the remaining economic life of the underlying asset as of the date there is a change in the lease term or in the assessment of a lessee option to purchase the underlying asset or as of the effective date of a modification not accounted for as a separate contract in accordance with paragraph 842-10-25-8).
","snippet":"An entity shall classify each separate lease component at the commencement date. An entity shall not reassess the lease classification after the commencement date unless the contract is modified and the modification is n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec314695ab3d9cff96e426dd840e004d3fb73d2210cb32079bb1e719fe06229f","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-2","para":"25-2","html":"
A lessee shall classify a lease as a finance lease and a lessor shall classify a lease as a sales-type lease when the lease meets any of the following criteria at lease commencement:
  1. a
    The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.
  2. b
    The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.
  3. c
    The lease term is for the major part of the remaining economic life of the underlying asset. However, if the commencement date falls at or near the end of the economic life of the underlying asset, this criterion shall not be used for purposes of classifying the lease.
  4. d
    The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments in accordance with paragraph 842-10-30-5(f) equals or exceeds substantially all of the fair value of the underlying asset.
  5. e
    The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.
","snippet":"A lessee shall classify a lease as a finance lease and a lessor shall classify a lease as a sales-type lease when the lease meets any of the following criteria at lease commencement:\n(a) The lease transfers ownership of …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27547d3a98003f6e1370324bcc6f1cb3dfcc191dd45d3e52afc64d8952a765f9","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-3","para":"25-3","html":"
When none of the criteria in paragraph 842-10-25-2 are met:
  1. a
    A lessee shall classify the lease as an operating lease.
  2. b
    A lessor shall classify the lease as either a direct financing lease or an operating lease. A lessor shall classify the lease as an operating lease unless both of the following criteria are met, in which case the lessor shall classify the lease as a direct financing lease:
    1. 1
      The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments in accordance with paragraph 842-10-30-5(f) and/or any other third party unrelated to the lessor equals or exceeds substantially all of the fair value of the underlying asset.
    2. 2
      It is probable that the lessor will collect the lease payments plus any amount necessary to satisfy a residual value guarantee.
","snippet":"When none of the criteria in paragraph 842-10-25-2 are met:\n(a) A lessee shall classify the lease as an operating lease.\n(b) A lessor shall classify the lease as either a direct financing lease or an operating lease. A l…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68ea2847ce11a7ad0a9dc6bd9da6d8670ff4d8cc76eaddd18b29c4499e24d3e9","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-3A","para":"25-3A","html":"
Notwithstanding the requirements in paragraphs
842-10-25-2 through 25-3
, a lessor shall classify a lease with variable lease payments that do not depend on an index or a rate as an operating lease at lease commencement if classifying the lease as a sales-type lease or a direct financing lease would result in the recognition of a selling loss.
","snippet":"Notwithstanding the requirements in paragraphs 842-10-25-2 through 25-3, a lessor shall classify a lease with variable lease payments that do not depend on an index or a rate as an operating lease at lease commencement i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:220f18921ae600510d03de087d56cffbec4a1126d51880b0644f37b0a0c12777","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-4","para":"25-4","html":"
A lessor shall assess the criteria in paragraphs 842-10-25-2(d) and 842-10-25-3(b)(1) using the rate implicit in the lease. For purposes of assessing the criterion in paragraph 842-10-25-2(d), a lessor shall assume that no initial direct costs will be deferred if, at the commencement date, the fair value of the underlying asset is different from its carrying amount.
","snippet":"A lessor shall assess the criteria in paragraphs 842-10-25-2(d) and 842-10-25-3(b)(1) using the rate implicit in the lease. For purposes of assessing the criterion in paragraph 842-10-25-2(d), a lessor shall assume that …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e921e74507686e89401185f42adec77e29e6738a3d0a3c433e71e5a3fbb16f59","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-5","para":"25-5","html":"
If a single lease component contains the right to use more than one underlying asset (see paragraphs
842-10-15-28 through 15-29
), an entity shall consider the remaining economic life of the predominant asset in the lease component for purposes of applying the criterion in paragraph 842-10-25-2(c).
","snippet":"If a single lease component contains the right to use more than one underlying asset (see paragraphs 842-10-15-28 through 15-29), an entity shall consider the remaining economic life of the predominant asset in the lease…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e182e3a326d858058ce4b0cbb3d8e3a64518d42e4269f07d5a49a4c45e9dd0e2","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-6","para":"25-6","html":"
When classifying a sublease, an entity shall classify the sublease with reference to the underlying asset (for example, the item of property, plant, or equipment that is the subject of the lease) rather than with reference to the right-of-use asset.
","snippet":"When classifying a sublease, an entity shall classify the sublease with reference to the underlying asset (for example, the item of property, plant, or equipment that is the subject of the lease) rather than with referen…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7d80dd71f1a49cc9be99d0210e57e18ad04196c7b59960aee65ef00ec8dab7b1","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-7","para":"25-7","html":"
See paragraphs
842-10-55-2 through 55-15
for implementation guidance on lease classification.
","snippet":"See paragraphs 842-10-55-2 through 55-15 for implementation guidance on lease classification.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be6a23d7494b0aee180183876b3ab76ad33f3c2c33dec423f191f13beb08b772","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:730f8ba301f55090e64737dad29d54e7490f4d23b0b9ce7b94c237812ea0b329","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"block":null,"heading":"Lease Modifications","paragraphs":[{"citation":"842-10-25-8","para":"25-8","html":"
An entity shall account for a modification to a contract as a separate contract (that is, separate from the original contract) when both of the following conditions are present:
  1. a
    The modification grants the lessee an additional right of use not included in the original lease (for example, the right to use an additional asset).
  2. b
    The lease payments increase commensurate with the standalone price for the additional right of use, adjusted for the circumstances of the particular contract. For example, the standalone price for the lease of one floor of an office building in which the lessee already leases other floors in that building may be different from the standalone price of a similar floor in a different office building, because it was not necessary for a lessor to incur costs that it would have incurred for a new lessee.
","snippet":"An entity shall account for a modification to a contract as a separate contract (that is, separate from the original contract) when both of the following conditions are present:\n(a) The modification grants the lessee an …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:751b86a60ff17495f4d6afc3800c28fb6e5970d511f2885e3d3e2878c701054c","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-9","para":"25-9","html":"
If a lease is modified and that modification is not accounted for as a separate contract in accordance with paragraph 842-10-25-8, the entity shall reassess the classification of the lease in accordance with paragraph 842-10-25-1 as of the effective date of the modification.
","snippet":"If a lease is modified and that modification is not accounted for as a separate contract in accordance with paragraph 842-10-25-8, the entity shall reassess the classification of the lease in accordance with paragraph 84…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8997445c4c98931af47045deda83867e9358c212200fad2158e9dc19a7677d5f","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-10","para":"25-10","html":"
An entity shall account for initial direct costs, lease incentives, and any other payments made to or by the entity in connection with a modification to a lease in the same manner as those items would be accounted for in connection with a new lease.
","snippet":"An entity shall account for initial direct costs, lease incentives, and any other payments made to or by the entity in connection with a modification to a lease in the same manner as those items would be accounted for in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62192d766182299c08ee908f81f3af2b8bbee075f1c39e2d654a75cf06d214ba","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-11","para":"25-11","html":"
A lessee shall reallocate the remaining consideration in the contract and remeasure the lease liability using a discount rate for the lease determined at the effective date of the modification if a contract modification does any of the following:
  1. a
    Grants the lessee an additional right of use not included in the original contract (and that modification is not accounted for as a separate contract in accordance with paragraph 842-10-25-8)
  2. b
    Extends or reduces the term of an existing lease (for example, changes the lease term from five to eight years or vice versa), other than through the exercise of a contractual option to extend or terminate the lease (as described in paragraph 842-20-35-5)
  3. c
    Fully or partially terminates an existing lease (for example, reduces the assets subject to the lease)
  4. d
    Changes the consideration in the contract only.
","snippet":"A lessee shall reallocate the remaining consideration in the contract and remeasure the lease liability using a discount rate for the lease determined at the effective date of the modification if a contract modification …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8438534fbce8a7665d49fee59445bf262488ca471c0592c215f5e4f4bec3b94","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-12","para":"25-12","html":"
In the case of (a), (b), or (d) in paragraph 842-10-25-11, the lessee shall recognize the amount of the remeasurement of the lease liability for the modified lease as an adjustment to the corresponding right-of-use asset.
","snippet":"In the case of (a), (b), or (d) in paragraph 842-10-25-11, the lessee shall recognize the amount of the remeasurement of the lease liability for the modified lease as an adjustment to the corresponding right-of-use asset…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb63556cc99ff1bc5bd4ce6c4c66a56d36876d24356066787d73fbc4bc38f190","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-13","para":"25-13","html":"
In the case of (c) in paragraph 842-10-25-11, the lessee shall decrease the carrying amount of the right-of-use asset on a basis proportionate to the full or partial termination of the existing lease. Any difference between the reduction in the lease liability and the proportionate reduction in the right-of-use asset shall be recognized as a gain or a loss at the effective date of the modification.
","snippet":"In the case of (c) in paragraph 842-10-25-11, the lessee shall decrease the carrying amount of the right-of-use asset on a basis proportionate to the full or partial termination of the existing lease. Any difference betw…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db459db3fccaecad4972197ee896183a5d9fe7a7adc67d08fce8b31ca9c3647e","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-14","para":"25-14","html":"
If a finance lease is modified and the modified lease is classified as an operating lease, any difference between the carrying amount of the right-of-use asset after recording the adjustment required by paragraph 842-10-25-12 or 842-10-25-13 and the carrying amount of the right-of-use asset that would result from applying the initial operating right-of-use asset measurement guidance in paragraph 842-20-30-5 to the modified lease shall be accounted for in the same manner as a rent prepayment or a lease incentive.
","snippet":"If a finance lease is modified and the modified lease is classified as an operating lease, any difference between the carrying amount of the right-of-use asset after recording the adjustment required by paragraph 842-10-…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f0267563cab19ab66fea9c6bd11f5839d803f2425b255b891ede8a20f04bcf0d","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-15","para":"25-15","html":"
If an operating lease is modified and the modification is not accounted for as a separate contract in accordance with paragraph 842-10-25-8, the lessor shall account for the modification as if it were a termination of the existing lease and the creation of a new lease that commences on the effective date of the modification as follows:
  1. a
    If the modified lease is classified as an operating lease, the lessor shall consider any prepaid or accrued lease rentals relating to the original lease as a part of the lease payments for the modified lease.
  2. b
    If the modified lease is classified as a direct financing lease or a sales-type lease, the lessor shall derecognize any deferred rent liability or accrued rent asset and adjust the selling profit or selling loss accordingly.
","snippet":"If an operating lease is modified and the modification is not accounted for as a separate contract in accordance with paragraph 842-10-25-8, the lessor shall account for the modification as if it were a termination of th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f96e2860bd2808df6573dc05cd647bccc20bae5665d520b36c0d6cb085f9d38","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-16","para":"25-16","html":"
If a direct financing lease is modified and the modification is not accounted for as a separate contract in accordance with paragraph 842-10-25-8, the lessor shall account for the modified lease as follows:
  1. a
    If the modified lease is classified as a direct financing lease, the lessor shall adjust the discount rate for the modified lease so that the initial net investment in the modified lease equals the carrying amount of the net investment in the original lease immediately before the effective date of the modification.
  2. b
    If the modified lease is classified as a sales-type lease, the lessor shall account for the modified lease in accordance with the guidance applicable to sales-type leases in Subtopic 842-30, with the commencement date of the modified lease being the effective date of the modification. In calculating the selling profit or selling loss on the lease, the fair value of the underlying asset is its fair value at the effective date of the modification and its carrying amount is the carrying amount of the net investment in the original lease immediately before the effective date of the modification.
  3. c
    If the modified lease is classified as an operating lease, the carrying amount of the underlying asset equals the net investment in the original lease immediately before the effective date of the modification.
","snippet":"If a direct financing lease is modified and the modification is not accounted for as a separate contract in accordance with paragraph 842-10-25-8, the lessor shall account for the modified lease as follows:\n(a) If the mo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:81b43b1b27a855bbaba821df9d2cd038b8f44d2b850fa5a0327dd5e2f8072bca","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-17","para":"25-17","html":"
If a sales-type lease is modified and the modification is not accounted for as a separate contract in accordance with paragraph 842-10-25-8, the lessor shall account for the modified lease as follows:
  1. a
    If the modified lease is classified as a sales-type or a direct financing lease, in the same manner as described in paragraph 842-10-25-16(a)
  2. b
    If the modified lease is classified as an operating lease, in the same manner as described in paragraph 842-10-25-16(c).
","snippet":"If a sales-type lease is modified and the modification is not accounted for as a separate contract in accordance with paragraph 842-10-25-8, the lessor shall account for the modified lease as follows:\n(a) If the modified…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:74552e3a43c91720eea4439507af6a8fca82302a68f78f359d4443ab563d867f","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"citation":"842-10-25-18","para":"25-18","html":"
See Examples 15 through 22 (paragraphs
842-10-55-159 through 55-209
) for illustrations of the requirements on lease modifications.
","snippet":"See Examples 15 through 22 (paragraphs 842-10-55-159 through 55-209) for illustrations of the requirements on lease modifications.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a63a10db389103aeb74acbe2ed9761f938de1cc59182917123ad83deae27dcec","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c6ec90b2fc8bacc63265c6eeadfb3044032d84ccc9f7250f20bdd11794d61d1","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},{"block":null,"heading":"Contract Combinations","paragraphs":[{"citation":"842-10-25-19","para":"25-19","html":"
An entity shall combine two or more contracts, at least one of which is or contains a lease, entered into at or near the same time with the same counterparty (or related parties) and consider the contracts as a single transaction if any of the following criteria are met:
  1. a
    The contracts are negotiated as a package with the same commercial objective(s).
  2. b
    The amount of consideration to be paid in one contract depends on the price or performance of the other contract.
  3. c
    The rights to use underlying assets conveyed in the contracts (or some of the rights of use conveyed in the contracts) are a single lease component in accordance with paragraph 842-10-15-28.
","snippet":"An entity shall combine two or more contracts, at least one of which is or contains a lease, entered into at or near the same time with the same counterparty (or related parties) and consider the contracts as a single tr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:299598620d08036baf39030610024be173256a0a79a3864ff6cbea40b14371eb","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bba61fddb63cc122b50999941a4c599cc8a8607ce38ef73cf607729c6c06ed3b","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:66884183a995c2a408cb2c7c2efd7589e654b2161de85c08b275c751e1a8861b","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:66884183a995c2a408cb2c7c2efd7589e654b2161de85c08b275c751e1a8861b","downloaded_from":"2026-09-10T01:55:57.299Z","last_downloaded_at":"2026-09-10T01:55:57.299Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479948","source_sha256":"4b7dd318665dd7d568c58c75bc61be9c2d828af9ecedbce35991203720870867"}}