# ASC 842-20-45: Leases — Lessee — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/842/20/#45-other-presentation-matters) 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): 2026-09-10T01:56:51.193Z to 2026-09-10T01:56:51.193Z Record version: sha256:a731fd98b6e55d46516de819ac97e06f8d976e7e98bce16febed45b1526dd8eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 842-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/842/20/#45-other-presentation-matters) SEC content: no #### Statement of Financial Position ##### [842-20-45-1](https://asc.understandingaccounting.org/asc/842/20/#842-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:51.193Z to 2026-09-10T01:56:51.193Z Record version: sha256:14e85278918a72aa2f838e4c3d0c3ec5dd1931dcfc73fbe1cf7141dd05c2ab9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [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.") shall either present in the statement of financial position or disclose in the notes all of the following: 1. a [Finance lease](https://asc.understandingaccounting.org/glossary/f/#finance-lease "From the perspective of a lessee, a lease that meets one or more of the criteria in paragraph 842-10-25-2.") [right-of-use assets](https://asc.understandingaccounting.org/glossary/r/#right-of-use-asset "An asset that represents a lessee's right to use an underlying asset for the lease term.") and [operating lease](https://asc.understandingaccounting.org/glossary/o/#operating-lease "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.") right-of-use assets separately from each other and from other assets 2. b Finance [lease liabilities](https://asc.understandingaccounting.org/glossary/l/#lease-liability "A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.") and operating lease liabilities separately from each other and from other liabilities. Right-of-use assets and lease liabilities shall be subject to the same considerations as other nonfinancial assets and financial liabilities in classifying them as current and noncurrent in classified statements of financial position. ##### [842-20-45-2](https://asc.understandingaccounting.org/asc/842/20/#842-20-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:51.193Z to 2026-09-10T01:56:51.193Z Record version: sha256:908841b1eee360e8fcdf88f330a6ba07678fb10826146121c8eaf1ca7c442d5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a lessee does not present finance lease and operating lease right-of-use assets and lease liabilities separately in the statement of financial position, the lessee shall disclose which line items in the statement of financial position include those right-of-use assets and lease liabilities. ##### [842-20-45-3](https://asc.understandingaccounting.org/asc/842/20/#842-20-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:51.193Z to 2026-09-10T01:56:51.193Z Record version: sha256:9094e7b80d6796f932d02c0507358823609271ca698e5056052f72a6f8f08dab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the statement of financial position, a lessee is prohibited from presenting both of the following: 1. a Finance lease right-of-use assets in the same line item as operating lease right-of-use assets 2. b Finance lease liabilities in the same line item as operating lease liabilities. #### Statement of Comprehensive Income ##### [842-20-45-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:51.193Z to 2026-09-10T01:56:51.193Z Record version: sha256:462979491902f5ac543e3853cf8333e110ca27479d8888225eb4d590a5ab8c97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the statement of comprehensive income, a [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.") shall present both of the following: 1. a For [finance leases](https://asc.understandingaccounting.org/glossary/f/#finance-lease "From the perspective of a lessee, a lease that meets one or more of the criteria in paragraph 842-10-25-2."), the interest expense on the [lease liability](https://asc.understandingaccounting.org/glossary/l/#lease-liability "A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.") and amortization of the [right-of-use asset](https://asc.understandingaccounting.org/glossary/r/#right-of-use-asset "An asset that represents a lessee's right to use an underlying asset for the lease term.") are not required to be presented as separate line items and shall be presented in a manner consistent with how the entity presents other interest expense and depreciation or amortization of similar assets, respectively 2. b For [operating leases](https://asc.understandingaccounting.org/glossary/o/#operating-lease "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."), [lease](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.") expense shall be included in the lessee's income from continuing operations. #### Statement of Cash Flows ##### [842-20-45-5](https://asc.understandingaccounting.org/asc/842/20/#842-20-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:51.193Z to 2026-09-10T01:56:51.193Z Record version: sha256:70365eec1631233efc1b67452c3ff6e88ea73175b539407b6b419cc22c199e4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the statement of cash flows, a [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.") shall classify all of the following: 1. a Repayments of the principal portion of the [lease liability](https://asc.understandingaccounting.org/glossary/l/#lease-liability "A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.") arising from [finance leases](https://asc.understandingaccounting.org/glossary/f/#finance-lease "From the perspective of a lessee, a lease that meets one or more of the criteria in paragraph 842-10-25-2.") within financing activities 2. b Interest on the lease liability arising from finance leases in accordance with the requirements relating to interest paid in Topic 230 on cash flows 3. c Payments arising from [operating leases](https://asc.understandingaccounting.org/glossary/o/#operating-lease "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.") within operating activities, except to the extent that those payments represent costs to bring another asset to the condition and location necessary for its intended use, which should be classified within investing activities 4. d [Variable lease payments](https://asc.understandingaccounting.org/glossary/v/#variable-lease-payments "Payments made by a lessee to a lessor for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.") and [short-term lease](https://asc.understandingaccounting.org/glossary/s/#short-term-lease "A lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise.") payments not included in the lease liability within operating activities.