{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/842/20/#35-subsequent-measurement","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":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"842-20-35-1","para":"35-1","html":"
After the commencement date, for a finance lease, a lessee shall measure both of the following:
  1. a
    The lease liability by increasing the carrying amount to reflect interest on the lease liability and reducing the carrying amount to reflect the lease payments made during the period. The lessee shall determine the interest on the lease liability in each period during the lease term as the amount that produces a constant periodic discount rate on the remaining balance of the liability, taking into consideration the reassessment requirements in paragraphs
    842-10-35-1 through 35-5
    .
  2. b
    The right-of-use asset at cost less any accumulated amortization and any accumulated impairment losses, taking into consideration the reassessment requirements in paragraphs
    842-10-35-1 through 35-5
    .
","snippet":"After the commencement date, for a finance lease, a lessee shall measure both of the following:\n(a) The lease liability by increasing the carrying amount to reflect interest on the lease liability and reducing the carryi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75859c2e81feb2c420183192de3a0be9a839c1947c8ac7f0f54e16ad16acb14f","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-2","para":"35-2","html":"
A lessee shall recognize amortization of the right-of-use asset and interest on the lease liability for a finance lease in accordance with paragraph 842-20-25-5.
","snippet":"A lessee shall recognize amortization of the right-of-use asset and interest on the lease liability for a finance lease in accordance with paragraph 842-20-25-5.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c234f10a718928ab0cce6783f54abecd5ac4468d4d0955caaaaffa44a329d67f","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-3","para":"35-3","html":"
After the commencement date, for an operating lease, a lessee shall measure both of the following:
  1. a
    The lease liability at the present value of the lease payments not yet paid discounted using the discount rate for the lease established at the commencement date (unless the rate has been updated after the commencement date in accordance with paragraph 842-20-35-5, in which case that updated rate shall be used)
  2. b
    The right-of-use asset at the amount of the lease liability, adjusted for the following, unless the right-of-use asset has been previously impaired, in which case the right-of-use asset is measured in accordance with paragraph 842-20-35-10 after the impairment:
    1. 1
      Prepaid or accrued lease payments
    2. 2
      The remaining balance of any lease incentives received, which is the amount of the gross lease incentives received net of amounts recognized previously as part of the single lease cost described in paragraph 842-20-25-6(a)
    3. 3
      Unamortized initial direct costs
    4. 4
      Impairment of the right-of-use asset.
","snippet":"After the commencement date, for an operating lease, a lessee shall measure both of the following:\n(a) The lease liability at the present value of the lease payments not yet paid discounted using the discount rate for th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e40375fc1e302ec16b435d6b07bb6657d0bd78d49e798fb12c7f416dcb538425","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:74e5793e22b967120c3bd9895a89c4ab626148c2c1564db337c82d5b8b59892f","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"block":null,"heading":"Remeasurement of the Lease Liability","paragraphs":[{"citation":"842-20-35-4","para":"35-4","html":"
After the commencement date, a lessee shall remeasure the lease liability to reflect changes to the lease payments as described in paragraphs
842-10-35-4 through 35-5
. A lessee shall recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to zero, a lessee shall recognize any remaining amount of the remeasurement in profit or loss.
","snippet":"After the commencement date, a lessee shall remeasure the lease liability to reflect changes to the lease payments as described in paragraphs 842-10-35-4 through 35-5. A lessee shall recognize the amount of the remeasure…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e2e9c0f483ca86c4ce6739c30a580d4c01be15546e4f7822dbe7b7ac2d94752","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-5","para":"35-5","html":"
If there is a remeasurement of the lease liability in accordance with paragraph 842-20-35-4, the lessee shall update the discount rate for the lease at the date of remeasurement on the basis of the remaining lease term and the remaining lease payments unless the remeasurement of the lease liability is the result of one of the following:
  1. a
    A change in the lease term or the assessment of whether the lessee will exercise an option to purchase the underlying asset and the discount rate for the lease already reflects that the lessee has an option to extend or terminate the lease or to purchase the underlying asset.
  2. b
    A change in amounts probable of being owed by the lessee under a residual value guarantee (see paragraph 842-10-35-4(c)(3)).
  3. c
    A change in the lease payments resulting from the resolution of a contingency upon which some or all of the variable lease payments that will be paid over the remainder of the lease term are based (see paragraph 842-10-35-4(b)).
","snippet":"If there is a remeasurement of the lease liability in accordance with paragraph 842-20-35-4, the lessee shall update the discount rate for the lease at the date of remeasurement on the basis of the remaining lease term a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:54f089a91d7144a5f3011f8af65e896329db8d8ef41c61c52923f090e9e25da0","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-6","para":"35-6","html":"
See Examples 3 and 4 (paragraphs
842-20-55-21 through 55-46
) for an illustration of the requirements on lessee subsequent measurement.
","snippet":"See Examples 3 and 4 (paragraphs 842-20-55-21 through 55-46) for an illustration of the requirements on lessee subsequent measurement.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ffd25aadebb3aacbfeecf5c02a97301e29b429347bf77fd78f30480c4153e82","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:efcdf60be393eaaab457d95b3fafa18e6581833b34a9c26324e2963cd93e4448","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"block":null,"heading":"Amortization of the Right-of-Use Asset for a Finance Lease","paragraphs":[{"citation":"842-20-35-7","para":"35-7","html":"
A lessee shall amortize the right-of-use asset on a straight-line basis, unless another systematic basis is more representative of the pattern in which the lessee expects to consume the right-of-use asset's future economic benefits. When the lease liability is remeasured and the right-of-use asset is adjusted in accordance with paragraph 842-20-35-4, amortization of the right-of-use asset shall be adjusted prospectively from the date of remeasurement.
","snippet":"A lessee shall amortize the right-of-use asset on a straight-line basis, unless another systematic basis is more representative of the pattern in which the lessee expects to consume the right-of-use asset's future econom…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb2d6736645455d0081f50e28fcf515d389ea1d9ed727adfd57c02e97d85054a","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-8","para":"35-8","html":"
A lessee shall amortize the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. However, if the lease transfers ownership of the underlying asset to the lessee or the lessee is reasonably certain to exercise an option to purchase the underlying asset, the lessee shall amortize the right-of-use asset to the end of the useful life of the underlying asset.
","snippet":"A lessee shall amortize the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. However, if the lease transfers ownership of …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ca476b13bb967849da78774288a14b1cd22e8e8fb06838701dc3f7023298a72","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f11ceacb286b1bbb6d7cb4ab10c53935ea59279825938e1032863f88212e7a8e","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"block":null,"heading":"Impairment of a Right-of-Use Asset","paragraphs":[{"citation":"842-20-35-9","para":"35-9","html":"
A lessee shall determine whether a right-of-use asset is impaired and shall recognize any impairment loss in accordance with Section 360-10-35 on impairment or disposal of long-lived assets.
","snippet":"A lessee shall determine whether a right-of-use asset is impaired and shall recognize any impairment loss in accordance with Section 360-10-35 on impairment or disposal of long-lived assets.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3466c2bc4079589dda75c5a5f014339ce1b65bc8e18d292ed908af371820bc2","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-10","para":"35-10","html":"
If a right-of-use asset is impaired in accordance with paragraph 842-20-35-9, after the impairment, it shall be measured at its carrying amount immediately after the impairment less any accumulated amortization. A lessee shall amortize, in accordance with paragraph 842-20-25-7 (for an operating lease) or paragraph 842-20-35-7 (for a finance lease), the right-of-use asset from the date of the impairment to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
","snippet":"If a right-of-use asset is impaired in accordance with paragraph 842-20-35-9, after the impairment, it shall be measured at its carrying amount immediately after the impairment less any accumulated amortization. A lessee…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e50ef8be429a70f5fd8c04b2be0c65da8103394a57df4151656979e4e6af9280","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-11","para":"35-11","html":"
See Example 5 (paragraphs
842-20-55-47 through 55-51
) for an illustration of the requirements for impairment of a right-of-use asset.
","snippet":"See Example 5 (paragraphs 842-20-55-47 through 55-51) for an illustration of the requirements for impairment of a right-of-use asset.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25877315e57a26464cb16df162b9bb5ef126fa120624a5e3236eeacadbe59ea2","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:11339956c498e26aca3b96b032498e9d6c7cc85a030b08ccf1448c56922754c6","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"block":null,"heading":"Amortization of Leasehold Improvements","paragraphs":[{"citation":"842-20-35-12","para":"35-12","html":"
Leasehold improvements, other than those accounted for in accordance with paragraph 842-20-35-12A, shall be amortized over the shorter of the useful life of those leasehold improvements and the remaining lease term, unless the lease transfers ownership of the underlying asset to the lessee or the lessee is reasonably certain to exercise an option to purchase the underlying asset, in which case the lessee shall amortize the leasehold improvements to the end of their useful life.
","snippet":"Leasehold improvements, other than those accounted for in accordance with paragraph 842-20-35-12A, shall be amortized over the shorter of the useful life of those leasehold improvements and the remaining lease term, unle…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc8e7089deec1a233f3313bb846205b6fa9cc404ee2d844a59c2487b7ce230c0","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-12A","para":"35-12A","html":"
Leasehold improvements associated with a lease between entities under common control shall be:
  1. a
    Amortized over the useful life of those improvements to the common control group as long as the lessee controls the use of the underlying asset through a lease. If the lessor obtained the right to control the use of the underlying asset through a lease with another entity not within the same common control group, the amortization period shall not exceed the amortization period of the common control group determined in accordance with paragraph 842-20-35-12.
  2. b
    Accounted for as a transfer between entities under common control through an adjustment to equity (net assets for a not-for-profit entity) when the lessee no longer controls the use of the underlying asset.
","snippet":"Leasehold improvements associated with a lease between entities under common control shall be:\n(a) Amortized over the useful life of those improvements to the common control group as long as the lessee controls the use o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fcf9b1b65723870d3229cdd3a464d1e7b26b5df71791c719dac6bf80f2653057","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-12B","para":"35-12B","html":"
An entity with leasehold improvements accounted for in accordance with paragraph 842-20-35-12A shall apply the impairment requirements in paragraph 360-10-40-4, considering the useful life to the common control group.
","snippet":"An entity with leasehold improvements accounted for in accordance with paragraph 842-20-35-12A shall apply the impairment requirements in paragraph 360-10-40-4, considering the useful life to the common control group.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b417eec9095ec4d61e09a5281cbfb08edb6dab713caab3fe6cd0924dc62df05","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-12C","para":"35-12C","html":"
If after the commencement date the lessee and lessor become within the same common control group or are no longer within the same common control group, any change in the required amortization period for leasehold improvements shall be accounted for prospectively as a change in accounting estimate in accordance with paragraph 250-10-45-17.
","snippet":"If after the commencement date the lessee and lessor become within the same common control group or are no longer within the same common control group, any change in the required amortization period for leasehold improve…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4f321533d98d04f5b79859d95b13d3548889a2136118b5dbcef8b56925972f7","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-13","para":"35-13","html":"
Leasehold improvements acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation shall be amortized over the shorter of the useful life of the assets and the remaining lease term at the date of acquisition.
","snippet":"Leasehold improvements acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation shall be amortized over the shorter of the useful life of …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56f004212a5d0a6f840c242850a18ec16a2b9c6f91c6d4e95501cc435554b33d","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b7a9d3c65ec1d83780cab951928c8ae2b8dee29e5d36385fec9956325830f7e1","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"block":null,"heading":"Subleases","paragraphs":[{"citation":"842-20-35-14","para":"35-14","html":"
If the nature of a sublease is such that the original lessee is not relieved of the primary obligation under the original lease, the original lessee (as sublessor) shall continue to account for the original lease in one of the following ways:
  1. a
    If the sublease is classified as an operating lease, the original lessee shall continue to account for the original lease as it did before commencement of the sublease. If the lease cost for the term of the sublease exceeds the anticipated sublease income for that same period, the original lessee shall treat that circumstance as an indicator that the carrying amount of the right-of-use asset associated with the original lease may not be recoverable in accordance with paragraph 360-10-35-21.
  2. b
    If the original lease is classified as a finance lease and the sublease is classified as a sales-type lease or a direct financing lease, the original lessee shall derecognize the original right-of-use asset in accordance with paragraph 842-30-40-1 and continue to account for the original lease liability as it did before commencement of the sublease. The original lessee shall evaluate its investment in the sublease for impairment in accordance with paragraph 842-30-35-3.
  3. c
    If the original lease is classified as an operating lease and the sublease is classified as a sales-type lease or a direct financing lease, the original lessee shall derecognize the original right-of-use asset in accordance with paragraph 842-30-40-1 and, from the sublease commencement date, account for the original lease liability in accordance with paragraphs
    842-20-35-1 through 35-2
    . The original lessee shall evaluate its investment in the sublease for impairment in accordance with paragraph 842-30-35-3.
","snippet":"If the nature of a sublease is such that the original lessee is not relieved of the primary obligation under the original lease, the original lessee (as sublessor) shall continue to account for the original lease in one …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2885ea238c55246f9e57e875694a6dc0a9d811e2b92f575eb9b68d0c0c4bc149","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},{"citation":"842-20-35-15","para":"35-15","html":"
The original lessee (as sublessor) in a sublease shall use the rate implicit in the lease to determine the classification of the sublease and to measure the net investment in the sublease if the sublease is classified as a sales-type or a direct financing lease unless that rate cannot be readily determined. If the rate implicit in the lease cannot be readily determined, the original lessee may use the discount rate for the lease established for the original (or head) lease.
","snippet":"The original lessee (as sublessor) in a sublease shall use the rate implicit in the lease to determine the classification of the sublease and to measure the net investment in the sublease if the sublease is classified as…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2140fc8f56e7a4deaf47c28e22056804a568aadb11197ee69ca2735ceae3140","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:86375a581b1e17783087bc6b1f5ddebf7e2ba05fdb24d2273ec9271c0a4f767e","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c0bf02335b8acbe9fe21f16ad20591a9aef558cf797553bd12887fc4971ded15","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c0bf02335b8acbe9fe21f16ad20591a9aef558cf797553bd12887fc4971ded15","downloaded_from":"2026-09-10T01:56:44.820Z","last_downloaded_at":"2026-09-10T01:56:44.820Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479165","source_sha256":"75b751611a0650e5b83c43ca2fd213fc91a763b9ab7c48d2e54360c776bb7e36"}}