{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/842/20/#50-disclosure","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":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"842-20-50-1","para":"50-1","html":"
The objective of the disclosure requirements is to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. To achieve that objective, a lessee shall disclose qualitative and quantitative information about all of the following:
  1. a
    Its leases (as described in paragraphs 842-20-50-3(a) through (b) and
    842-20-50-7 through 50-10
    )
  2. b
    The significant judgments made in applying the requirements in this Topic to those leases (as described in paragraph 842-20-50-3(c))
  3. c
    The amounts recognized in the financial statements relating to those leases (as described in paragraphs 842-20-50-4 and 842-20-50-6).
","snippet":"The objective of the disclosure requirements is to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. To achieve that objective, a lessee shall disclose …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6dcad2341893d11ae0c66f82e44d35763bc0cfeb8ffa21a6196637318acdac08","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},{"citation":"842-20-50-2","para":"50-2","html":"
A lessee shall consider the level of detail necessary to satisfy the disclosure objective and how much emphasis to place on each of the various requirements. A lessee shall aggregate or disaggregate disclosures so that useful information is not obscured by including a large amount of insignificant detail or by aggregating items that have different characteristics.
","snippet":"A lessee shall consider the level of detail necessary to satisfy the disclosure objective and how much emphasis to place on each of the various requirements. A lessee shall aggregate or disaggregate disclosures so that u…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6fceced820e71c5db06391672716ec764dc168bceefcf271a2eb64af317cc2da","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},{"citation":"842-20-50-3","para":"50-3","html":"
A lessee shall disclose all of the following:
  1. a
    Information about the nature of its leases, including:
    1. 1
      A general description of those leases.
    2. 2
      The basis and terms and conditions on which variable lease payments are determined.
    3. 3
      The existence and terms and conditions of options to extend or terminate the lease. A lessee should provide narrative disclosure about the options that are recognized as part of its right-of-use assets and lease liabilities and those that are not.
    4. 4
      The existence and terms and conditions of residual value guarantees provided by the lessee.
    5. 5
      The restrictions or covenants imposed by leases, for example, those relating to dividends or incurring additional financial obligations.
    A lessee should identify the information relating to subleases included in the disclosures provided in (1) through (5), as applicable.
  2. b
    Information about leases that have not yet commenced but that create significant rights and obligations for the lessee, including the nature of any involvement with the construction or design of the underlying asset.
  3. c
    Information about significant assumptions and judgments made in applying the requirements of this Topic, which may include the following:
    1. 1
      The determination of whether a contract contains a lease (as described in paragraphs
      842-10-15-2 through 15-27
      )
    2. 2
      The allocation of the consideration in a contract between lease and nonlease components (as described in paragraphs
      842-10-15-28 through 15-32
      )
    3. 3
      The determination of the discount rate for the lease (as described in paragraphs
      842-20-30-2 through 30-4
      ).
","snippet":"A lessee shall disclose all of the following:\n(a) Information about the nature of its leases, including:\n(1) A general description of those leases.\n(2) The basis and terms and conditions on which variable lease payments …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5590ba9456049860cde5198107b603a171291285c0b9031dea92e69b7c01eda3","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},{"citation":"842-20-50-4","para":"50-4","html":"
For each period presented in the financial statements, a lessee shall disclose the following amounts relating to a lessee's total lease cost, which includes both amounts recognized in profit or loss during the period and any amounts capitalized as part of the cost of another asset in accordance with other Topics, and the cash flows arising from lease transactions:
  1. a
    Finance lease cost, segregated between the amortization of the right-of-use assets and interest on the lease liabilities.
  2. b
    Operating lease cost determined in accordance with paragraphs 842-20-25-6(a) and 842-20-25-7.
  3. c
    Short-term lease cost, excluding expenses relating to leases with a lease term of one month or less, determined in accordance with paragraph 842-20-25-2.
  4. d
    Variable lease cost determined in accordance with paragraphs 842-20-25-5(b) and 842-20-25-6(b).
  5. e
    Sublease income, disclosed on a gross basis, separate from the finance or operating lease expense.
  6. f
    Net gain or loss recognized from sale and leaseback transactions in accordance with paragraph 842-40-25-4.
  7. g
    Amounts segregated between those for finance and operating leases for the following items:
    1. 1
      Cash paid for amounts included in the measurement of lease liabilities, segregated between operating and financing cash flows
    2. 2
      Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets
    3. 3
      Weighted-average remaining lease term
    4. 4
      Weighted-average discount rate.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
220-40-65-1For each period presented in the financial statements, a lessee shall disclose the following amounts relating to a lessee's total lease cost, which includes both amounts recognized in profit or loss during the period and any amounts capitalized as part of the cost of another asset in accordance with other Topics, and the cash flows arising from lease transactions:
  1. a
    Finance lease cost, segregated between the amortization of the right-of-use assets and interest on the lease liabilities.
  2. b
    Operating lease cost determined in accordance with paragraphs 842-20-25-6(a) and 842-20-25-7.
  3. c
    Short-term lease cost, excluding expenses relating to leases with a lease term of one month or less, determined in accordance with paragraph 842-20-25-2.
  4. d
    Variable lease cost determined in accordance with paragraphs 842-20-25-5(b) and 842-20-25-6(b).
  5. e
    Sublease income, disclosed on a gross basis, separate from the finance or operating lease expense.
  6. f
    Net gain or loss recognized from sale and leaseback transactions in accordance with paragraph 842-40-25-4.
  7. g
    Amounts segregated between those for finance and operating leases for the following items:
    1. 1
      Cash paid for amounts included in the measurement of lease liabilities, segregated between operating and financing cash flows
    2. 2
      Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets
    3. 3
      Weighted-average remaining lease term
    4. 4
      Weighted-average discount rate.
See paragraphs
220-40-50-21 through 50-25
for additional disclosure requirements.
","snippet":"For each period presented in the financial statements, a lessee shall disclose the following amounts relating to a lessee's total lease cost, which includes both amounts recognized in profit or loss during the period and…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dbf0a063cfd8777057400c9acc8f6dc6ad38737154114ba864643df45303fa86","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},{"citation":"842-20-50-5","para":"50-5","html":"
See paragraphs
842-20-55-11 through 55-12
for implementation guidance on preparing the weighted-average remaining lease term and the weighted-average discount rate disclosures. See Example 6 (paragraphs
842-20-55-52 through 55-53
) for an illustration of the lessee quantitative disclosure requirements in paragraph 842-20-50-4.
","snippet":"See paragraphs 842-20-55-11 through 55-12 for implementation guidance on preparing the weighted-average remaining lease term and the weighted-average discount rate disclosures. See Example 6 (paragraphs 842-20-55-52 thro…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f70492fd3ec003a691a8fdbc4c265bf30ec23b7464e00fe6546d1c358e0ebca","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},{"citation":"842-20-50-6","para":"50-6","html":"
A lessee shall disclose a maturity analysis of its finance lease liabilities and its operating lease liabilities separately, showing the undiscounted cash flows on an annual basis for a minimum of each of the first five years and a total of the amounts for the remaining years. A lessee shall disclose a reconciliation of the undiscounted cash flows to the finance lease liabilities and operating lease liabilities recognized in the statement of financial position.
","snippet":"A lessee shall disclose a maturity analysis of its finance lease liabilities and its operating lease liabilities separately, showing the undiscounted cash flows on an annual basis for a minimum of each of the first five …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c51df03dfa17d86a684363fd5c9c9a06fcd728d602ea9b5cc06e356a3416cfd4","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},{"citation":"842-20-50-7","para":"50-7","html":"
A lessee shall disclose lease transactions between related parties in accordance with paragraphs
850-10-50-1 through 50-6
.
","snippet":"A lessee shall disclose lease transactions between related parties in accordance with paragraphs 850-10-50-1 through 50-6.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68c6a86e2783e69d0b563f73b5a3ba1e08032cbab59e50a5a100c34193a9c899","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},{"citation":"842-20-50-7A","para":"50-7A","html":"
When the useful life of leasehold improvements to the common control group determined in accordance with paragraph 842-20-35-12A exceeds the related lease term, a lessee shall disclose the following information:
  1. a
    The unamortized balance of the leasehold improvements at the balance sheet date
  2. b
    The remaining useful life of the leasehold improvements to the common control group
  3. c
    The remaining lease term.
","snippet":"When the useful life of leasehold improvements to the common control group determined in accordance with paragraph 842-20-35-12A exceeds the related lease term, a lessee shall disclose the following information:\n(a) The …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a6c2f36ead616186ac671d2e3cc1784d010733f4dbd3e14c85bd83dd0c1927fc","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},{"citation":"842-20-50-8","para":"50-8","html":"
A lessee that accounts for short-term leases in accordance with paragraph 842-20-25-2 shall disclose that fact. If the short-term lease expense for the period does not reasonably reflect the lessee's short-term lease commitments, a lessee shall disclose that fact and the amount of its short-term lease commitments.
","snippet":"A lessee that accounts for short-term leases in accordance with paragraph 842-20-25-2 shall disclose that fact. If the short-term lease expense for the period does not reasonably reflect the lessee's short-term lease com…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7c232b2f2fe2d4ebc7cdd884f76608fc0e1b906881f076c2f5299e2b1ec2238","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},{"citation":"842-20-50-9","para":"50-9","html":"
A lessee that elects the practical expedient on not separating lease components from nonlease components in paragraph 842-10-15-37 shall disclose its accounting policy election and which class or classes of underlying assets it has elected to apply the practical expedient.
","snippet":"A lessee that elects the practical expedient on not separating lease components from nonlease components in paragraph 842-10-15-37 shall disclose its accounting policy election and which class or classes of underlying as…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa81154b21a1d2921bb32521bbee7b82d0b18eee163245e1bc14caacbdcec375","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},{"citation":"842-20-50-10","para":"50-10","html":"
A lessee that makes the accounting policy election in paragraph 842-20-30-3 to use a risk-free rate as the discount rate shall disclose its election and the class or classes of underlying assets to which the election has been applied.
","snippet":"A lessee that makes the accounting policy election in paragraph 842-20-30-3 to use a risk-free rate as the discount rate shall disclose its election and the class or classes of underlying assets to which the election has…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1dc381883b4ea079d8f0cde7a64c6cbd05bae17b425f274d246bbacd142a767","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4c07a4302e8aebbf83946c542338535e1a7e00365d94e517a0bf6bc62fbdcd6a","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:81f66780108ffa67ccf7faefaf0f824d1efbe6f6eabb1c6bc3395d8354c52ee3","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:81f66780108ffa67ccf7faefaf0f824d1efbe6f6eabb1c6bc3395d8354c52ee3","downloaded_from":"2026-09-10T01:56:55.303Z","last_downloaded_at":"2026-09-10T01:56:55.303Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478964","source_sha256":"efdc99455b24208b8333821bbad1f2ea0e2805e1488b0ba508bdd4aec04da415"}}