# ASC 842-20-50: Leases — Lessee — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/842/20/#50-disclosure) 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): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:81f66780108ffa67ccf7faefaf0f824d1efbe6f6eabb1c6bc3395d8354c52ee3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 842-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/842/20/#50-disclosure) SEC content: no ##### [842-20-50-1](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:6dcad2341893d11ae0c66f82e44d35763bc0cfeb8ffa21a6196637318acdac08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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."). To achieve that objective, 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 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)](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-3) and [842-20-50-7 through 50-10](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-7) ) 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)](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-3)) 3. c The amounts recognized in the financial statements relating to those leases (as described in paragraphs [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4) and [842-20-50-6](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-6)). ##### [842-20-50-2](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:6fceced820e71c5db06391672716ec764dc168bceefcf271a2eb64af317cc2da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [842-20-50-3](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:5590ba9456049860cde5198107b603a171291285c0b9031dea92e69b7c01eda3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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.") 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](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 [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 those that are not. 4. 4 The existence and terms and conditions of [residual value guarantees](https://asc.understandingaccounting.org/glossary/r/#residual-value-guarantee "A guarantee made to a lessor that the value of an underlying asset returned to the lessor at the end of a lease will be at least a specified amount.") 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](https://asc.understandingaccounting.org/glossary/s/#sublease "A transaction in which an underlying asset is re-leased by the lessee (or intermediate lessor) to a third party (the sublessee) and the original (or head) lease between the lessor and the lessee remains in effect.") 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](https://asc.understandingaccounting.org/glossary/u/#underlying-asset "An asset that is the subject of a lease for which a right to use that asset has been conveyed to a lessee. The underlying asset could be a physically distinct portion of a single 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](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") contains a lease (as described in paragraphs [842-10-15-2 through 15-27](https://asc.understandingaccounting.org/asc/842/10/#842-10-15-2) ) 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](https://asc.understandingaccounting.org/asc/842/10/#842-10-15-28) ) 3. 3 The determination of the [discount rate for the lease](https://asc.understandingaccounting.org/glossary/d/#discount-rate-for-the-lease "For a lessee, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the lessee is required to use its incremental borrowing rate. For a lessor, the discount rate for the lease is the rate implicit in the lease.") (as described in paragraphs [842-20-30-2 through 30-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-30-2) ). ##### [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4) Pending content: yes Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:dbf0a063cfd8777057400c9acc8f6dc6ad38737154114ba864643df45303fa86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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.") cost, segregated between the amortization of the right-of-use assets and interest on the lease liabilities. 2. b [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.") cost determined in accordance with paragraphs [842-20-25-6(a)](https://asc.understandingaccounting.org/asc/842/20/#842-20-25-6) and [842-20-25-7](https://asc.understandingaccounting.org/asc/842/20/#842-20-25-7). 3. c [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.") cost, excluding expenses relating to leases with a [lease term](https://asc.understandingaccounting.org/glossary/l/#lease-term "The noncancellable period for which a lessee has the right to use an underlying asset, together with all of the following: Periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option Periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option Periods covered by an option to extend (or not to terminate) the lease in which exercise of the option is controlled by the lessor.") of one month or less, determined in accordance with paragraph [842-20-25-2](https://asc.understandingaccounting.org/asc/842/20/#842-20-25-2). 4. d Variable lease cost determined in accordance with paragraphs [842-20-25-5(b)](https://asc.understandingaccounting.org/asc/842/20/#842-20-25-5) and [842-20-25-6(b)](https://asc.understandingaccounting.org/asc/842/20/#842-20-25-6). 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](https://asc.understandingaccounting.org/asc/842/40/#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: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)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](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.") cost, segregated between the amortization of the right-of-use assets and interest on the lease liabilities. 2. b [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.") cost determined in accordance with paragraphs [842-20-25-6(a)](https://asc.understandingaccounting.org/asc/842/20/#842-20-25-6) and [842-20-25-7](https://asc.understandingaccounting.org/asc/842/20/#842-20-25-7). 3. c [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.") cost, excluding expenses relating to leases with a [lease term](https://asc.understandingaccounting.org/glossary/l/#lease-term "The noncancellable period for which a lessee has the right to use an underlying asset, together with all of the following: Periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option Periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option Periods covered by an option to extend (or not to terminate) the lease in which exercise of the option is controlled by the lessor.") of one month or less, determined in accordance with paragraph [842-20-25-2](https://asc.understandingaccounting.org/asc/842/20/#842-20-25-2). 4. d Variable lease cost determined in accordance with paragraphs [842-20-25-5(b)](https://asc.understandingaccounting.org/asc/842/20/#842-20-25-5) and [842-20-25-6(b)](https://asc.understandingaccounting.org/asc/842/20/#842-20-25-6). 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](https://asc.understandingaccounting.org/asc/842/40/#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](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. ##### [842-20-50-5](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:5f70492fd3ec003a691a8fdbc4c265bf30ec23b7464e00fe6546d1c358e0ebca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [842-20-55-11 through 55-12](https://asc.understandingaccounting.org/asc/842/20/#842-20-55-11) 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](https://asc.understandingaccounting.org/asc/842/20/#842-20-55-52) ) for an illustration of the lessee quantitative disclosure requirements in paragraph [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4). ##### [842-20-50-6](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:c51df03dfa17d86a684363fd5c9c9a06fcd728d602ea9b5cc06e356a3416cfd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [842-20-50-7](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:68c6a86e2783e69d0b563f73b5a3ba1e08032cbab59e50a5a100c34193a9c899 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessee shall disclose lease transactions between related parties in accordance with paragraphs [850-10-50-1 through 50-6](https://asc.understandingaccounting.org/asc/850/10/#850-10-50-1) . ##### [842-20-50-7A](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-7A) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:a6c2f36ead616186ac671d2e3cc1784d010733f4dbd3e14c85bd83dd0c1927fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When the [useful life](https://asc.understandingaccounting.org/glossary/u/#useful-life "The period over which an asset is expected to contribute directly or indirectly to future cash flows.") of leasehold improvements to the common control group determined in accordance with paragraph [842-20-35-12A](https://asc.understandingaccounting.org/asc/842/20/#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. ##### [842-20-50-8](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:e7c232b2f2fe2d4ebc7cdd884f76608fc0e1b906881f076c2f5299e2b1ec2238 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessee that accounts for short-term leases in accordance with paragraph [842-20-25-2](https://asc.understandingaccounting.org/asc/842/20/#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. ##### [842-20-50-9](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:aa81154b21a1d2921bb32521bbee7b82d0b18eee163245e1bc14caacbdcec375 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessee that elects the practical expedient on not separating lease components from nonlease components in paragraph [842-10-15-37](https://asc.understandingaccounting.org/asc/842/10/#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. ##### [842-20-50-10](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:56:55.303Z to 2026-09-10T01:56:55.303Z Record version: sha256:f1dc381883b4ea079d8f0cde7a64c6cbd05bae17b425f274d246bbacd142a767 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessee that makes the accounting policy election in paragraph [842-20-30-3](https://asc.understandingaccounting.org/asc/842/20/#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.