{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/842/20/#05-overview-and-background","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":"842-20","subtopic_title":"Lessee","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"842-20-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4084C78-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic addresses accounting by <a href=\"/glossary/l/#lessee\" class=\"term\" title=\"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.\"><span>lessees</span></a> for <a href=\"/glossary/l/#lease\" class=\"term\" title=\"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.\"><span>leases</span></a> that have been classified as <a href=\"/glossary/f/#finance-lease\" class=\"term\" title=\"From the perspective of a lessee, a lease that meets one or more of the criteria in paragraph 842-10-25-2.\"><span>finance leases</span></a> or <a href=\"/glossary/o/#operating-lease\" class=\"term\" title=\"From the perspective of a lessee, any lease other than a finance lease. From the perspective of a lessor, any lease other than a sales-type lease or a direct financing lease.\"><span>operating leases</span></a> in accordance with the requirements in Subtopic <a altsource=\"GUID-90DC7ABA-6FDB-4794-B87E-88E002C4BA2E.ditamap\" class=\"ditamap\">842-10</a>. Lessees shall follow the requirements in this Subtopic as well as those in Subtopic <a altsource=\"GUID-90DC7ABA-6FDB-4794-B87E-88E002C4BA2E.ditamap\" class=\"ditamap\">842-10</a>.</span></span> </div> </div>","snippet":"This Subtopic addresses accounting by lessees for leases that have been classified as finance leases or operating leases in accordance with the requirements in Subtopic 842-10. Lessees shall follow the requirements in th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f1124f5a3f9c5cc9f005bc37ccd337031b8b0dc62df554db0bc2d9641dc9540","downloaded_from":"2026-09-10T01:56:30.278Z","last_downloaded_at":"2026-09-10T01:56:30.278Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479703","source_sha256":"5c58dcabcbd162837540184c9f469de547f356b00f580084df48ff9532c46dbc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2029ca0af292c1ba117147928e648414db9026e047625fc45d550b7923750277","downloaded_from":"2026-09-10T01:56:30.278Z","last_downloaded_at":"2026-09-10T01:56:30.278Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479703","source_sha256":"5c58dcabcbd162837540184c9f469de547f356b00f580084df48ff9532c46dbc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bba73173112883d57457239ffa231cb739c93111681c19ea4c14b26a3e8ca039","downloaded_from":"2026-09-10T01:56:30.278Z","last_downloaded_at":"2026-09-10T01:56:30.278Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479703","source_sha256":"5c58dcabcbd162837540184c9f469de547f356b00f580084df48ff9532c46dbc"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bba73173112883d57457239ffa231cb739c93111681c19ea4c14b26a3e8ca039","downloaded_from":"2026-09-10T01:56:30.278Z","last_downloaded_at":"2026-09-10T01:56:30.278Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479703","source_sha256":"5c58dcabcbd162837540184c9f469de547f356b00f580084df48ff9532c46dbc"}}