{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/842/20/","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.","number":"842-20","topic":"842","title":"Lessee","area":"Broad Transactions","paragraphs":107,"summary":"ASC 842-20 governs how a lessee accounts for leases already classified as finance or operating leases under 842-10. At commencement the lessee recognizes a right-of-use asset and lease liability measured at the present value of unpaid lease payments (842-20-25-1; 30-1); thereafter finance leases produce separate amortization and interest (842-20-25-5), while operating leases produce a single straight-line lease cost (842-20-25-6). It also covers short-term lease policy elections, remeasurement, ROU asset impairment, leasehold improvements, subleases, terminations, and extensive presentation and disclosure requirements.","concepts":["right-of-use asset","lease liability","finance lease","operating lease","single lease cost","short-term lease election","incremental borrowing rate","remeasurement and impairment of rou asset"],"categories":["Leases","Initial measurement","Subsequent measurement","Disclosure"],"level":"intermediate","topic_title":"Leases","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"842-20-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL77944739-209941\"><tr><td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"><a href=\"/glossary/a/#acquiree\" class=\"term\" title=\"The business or businesses that the acquirer obtains control of in a business combination. This term also includes a nonprofit activity or business that a not-for-profit acquirer obtains control of in an acquisition by a not-for-profit entity.\"><span>Acquiree</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/a/#acquirer\" class=\"term\" title=\"The entity that obtains control of the acquiree. However, in a business combination in which a variable interest entity (VIE) is acquired, the primary beneficiary of that entity always is the acquirer. (P) December 16, 2026; (N) December 16, 2026805-10-65-5The entity that obtains control of the acquiree.See paragraphs 805-10-25-4805-10-25-5 for guidance on determining the acquirer.\"><span>Acquirer</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2025-03/\" class=\"xref\">Accounting Standards Update No. 2025-03</a></td><td class=\"entry\">05/12/2025</td></tr><tr><td class=\"entry\"><a href=\"/glossary/a/#acquirer\" class=\"term\" title=\"The entity that obtains control of the acquiree. However, in a business combination in which a variable interest entity (VIE) is acquired, the primary beneficiary of that entity always is the acquirer. (P) December 16, 2026; (N) December 16, 2026805-10-65-5The entity that obtains control of the acquiree.See paragraphs 805-10-25-4805-10-25-5 for guidance on determining the acquirer.\"><span>Acquirer</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/a/#acquisition-by-a-not-for-profit-entity\" class=\"term\" title=\"A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities.\"><span>Acquisition by a Not-for-Profit Entity</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/b/#business\" class=\"term\" title=\"Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.\"><span>Business</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2017-01/\" class=\"xref\">Accounting Standards Update No. 2017-01</a></td><td class=\"entry\">01/05/2017</td></tr><tr><td class=\"entry\"><a href=\"/glossary/b/#business\" class=\"term\" title=\"Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.\"><span>Business</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/b/#business-combination\" class=\"term\" title=\"A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.\"><span>Business Combination</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>Commencement Date of the Lease (Commencement Date)</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/c/#contract\" class=\"term\" title=\"An agreement between two or more parties that creates enforceable rights and obligations.\"><span>Contract</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/c/#corporate-joint-venture\" class=\"term\" title=\"A corporation owned and operated by a small group of entities (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a corporate joint venture frequently is to share risks and rewards in developing a new market, product or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A corporate joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a corporate joint venture. The ownership of a corporate joint venture seldom changes, and its stock is usually not traded publicly. A noncontrolling interest held by public ownership, however, does not preclude a corporation from being a corporate joint venture.\"><span>Corporate Joint Venture</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2023-05/\" class=\"xref\">Accounting Standards Update No. 2023-05</a></td><td class=\"entry\">08/23/2023</td></tr><tr><td class=\"entry\"><a href=\"/glossary/d/#direct-financing-lease\" class=\"term\" title=\"From the perspective of a lessor, a lease that meets none of the criteria in paragraph 842-10-25-2 but meets the criteria in paragraph 842-10-25-3(b)and is not an operating lease in accordance with paragraph 842-10-25-3A.\"><span>Direct Financing Lease</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2021-05/\" class=\"xref\">Accounting Standards Update No. 2021-05</a></td><td class=\"entry\">07/19/2021</td></tr><tr><td class=\"entry\"><a href=\"/glossary/d/#direct-financing-lease\" class=\"term\" title=\"From the perspective of a lessor, a lease that meets none of the criteria in paragraph 842-10-25-2 but meets the criteria in paragraph 842-10-25-3(b)and is not an operating lease in accordance with paragraph 842-10-25-3A.\"><span>Direct Financing Lease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/d/#discount-rate-for-the-lease\" class=\"term\" title=\"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.\"><span>Discount Rate for the Lease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.\"><span>Fair Value</span></a> (2nd def.)</td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><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 Lease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/i/#incremental-borrowing-rate\" class=\"term\" title=\"The rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.\"><span>Incremental Borrowing Rate</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/i/#initial-direct-costs\" class=\"term\" title=\"Incremental costs of a lease that would not have been incurred if the lease had not been obtained.\"><span>Initial Direct Costs</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/j/#joint-venture\" class=\"term\" title=\"An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.\"><span>Joint Venture</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2023-05/\" class=\"xref\">Accounting Standards Update No. 2023-05</a></td><td class=\"entry\">08/23/2023</td></tr><tr><td class=\"entry\"><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>Lease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>Lease Liability</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#lease-modification\" class=\"term\" title=\"A change to the terms and conditions of a contract that results in a change in the scope of or the consideration for a lease (for example, a change to the terms and conditions of the contract that adds or terminates the right to use one or more underlying assets or extends or shortens the contractual lease term).\"><span>Lease Modification</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#lease-payments\" class=\"term\" title=\"See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.\"><span>Lease Payments</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>Lease Term</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#legal-entity\" class=\"term\" title=\"Any legal structure used to conduct activities or to hold assets. Some examples of such structures are corporations, partnerships, limited liability companies, grantor trusts, and other trusts.\"><span>Legal Entity</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><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>Lessee</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#lessor\" class=\"term\" title=\"An entity that enters into a contract to provide the right to use an underlying asset for a period of time in exchange for consideration.\"><span>Lessor</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/m/#market-participants\" class=\"term\" title=\"Buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics: They are independent of each other, that is, they are not related parties, although the price in a related-party transaction may be used as an input to a fair value measurement if the reporting entity has evidence that the transaction was entered into at market terms They are knowledgeable, having a reasonable understanding about the asset or liability and the transaction using all available information, including information that might be obtained through due diligence efforts that are usual and customary They are able to enter into a transaction for the asset or liability They are willing to enter into a transaction for the asset or liability, that is, they are motivated but not forced or otherwise compelled to do so.\"><span>Market Participants</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/m/#monetary-liability\" class=\"term\" title=\"An obligation to pay a sum of money the amount of which is fixed or determinable without reference to future prices of specific goods and services.\"><span>Monetary Liability</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.\"><span>Not-for-Profit Entity</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><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 Lease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/o/#orderly-transaction\" class=\"term\" title=\"A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (for example, a forced liquidation or distress sale).\"><span>Orderly Transaction</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/p/#probable\" class=\"term\" title=\"The future event or events are likely to occur.\"><span>Probable</span></a> (2nd def.)</td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/r/#rate-implicit-in-the-lease\" class=\"term\" title=\"The rate of interest that, at a given date, causes the aggregate present value of (a) the lease paymentsand (b) the amount that a lessor expects to derive from the underlying asset following the end of the lease termto equal the sum of (1) the fair value of the underlying asset minus any related investment tax credit retained and expected to be realized by the lessor and (2) any deferred initial direct costs of the lessor. However, if the rate determined in accordance with the preceding sentence is less than zero, a rate implicit in the lease of zero shall be used.\"><span>Rate Implicit in the Lease</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2018-10/\" class=\"xref\">Accounting Standards Update No. 2018-10</a></td><td class=\"entry\">07/18/2018</td></tr><tr><td class=\"entry\"><a href=\"/glossary/r/#rate-implicit-in-the-lease\" class=\"term\" title=\"The rate of interest that, at a given date, causes the aggregate present value of (a) the lease paymentsand (b) the amount that a lessor expects to derive from the underlying asset following the end of the lease termto equal the sum of (1) the fair value of the underlying asset minus any related investment tax credit retained and expected to be realized by the lessor and (2) any deferred initial direct costs of the lessor. However, if the rate determined in accordance with the preceding sentence is less than zero, a rate implicit in the lease of zero shall be used.\"><span>Rate Implicit in the Lease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/r/#related-parties\" class=\"term\" title=\"Related parties include: Affiliates of the entity Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity Trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management Principal owners of the entity and members of their immediate families Management of the entity and members of their immediate families Other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.\"><span>Related Parties</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/r/#residual-value-guarantee\" class=\"term\" title=\"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.\"><span>Residual Value Guarantee</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>Right-of-Use Asset</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/s/#sales-type-lease\" class=\"term\" title=\"From the perspective of a lessor, a lease that meets one or more of the criteria in paragraph 842-10-25-2 and is not an operating lease in accordance with paragraph 842-10-25-3A.\"><span>Sales-Type Lease</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2021-05/\" class=\"xref\">Accounting Standards Update No. 2021-05</a></td><td class=\"entry\">07/19/2021</td></tr><tr><td class=\"entry\"><a href=\"/glossary/s/#sales-type-lease\" class=\"term\" title=\"From the perspective of a lessor, a lease that meets one or more of the criteria in paragraph 842-10-25-2 and is not an operating lease in accordance with paragraph 842-10-25-3A.\"><span>Sales-Type Lease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/s/#short-term-lease\" class=\"term\" title=\"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.\"><span>Short-Term Lease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/s/#sublease\" class=\"term\" title=\"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.\"><span>Sublease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"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.\"><span>Underlying Asset</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/u/#useful-life\" class=\"term\" title=\"The period over which an asset is expected to contribute directly or indirectly to future cash flows.\"><span>Useful Life</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><strong class=\"ph b\">Variable Interest Entity</strong></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2025-03/\" class=\"xref\">Accounting Standards Update No. 2025-03</a></td><td class=\"entry\">05/12/2025</td></tr><tr><td class=\"entry\"><strong class=\"ph b\">Variable Interest Entity</strong></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/v/#variable-lease-payments\" class=\"term\" title=\"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.\"><span>Variable Lease Payments</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/842/20/#842-20-05-1\" class=\"xref\">842-20-05-1</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/842/20/#842-20-15-1\" class=\"xref\">842-20-15-1</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-25-1\" class=\"xref\">842-20-25-1 through 25-8</a></div></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-30-1\" class=\"xref\">842-20-30-1 through 30-6</a></div></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/842/20/#842-20-30-3\" class=\"xref\">842-20-30-3</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2021-09/\" class=\"xref\">Accounting Standards Update No. 2021-09</a></td><td class=\"entry\">11/11/2021</td></tr><tr><td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-35-1\" class=\"xref\">842-20-35-1 through 35-15</a></div></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/842/20/#842-20-35-12\" class=\"xref\">842-20-35-12</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2023-01/\" class=\"xref\">Accounting Standards Update No. 2023-01</a></td><td class=\"entry\">03/27/2023</td></tr><tr><td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-35-12A\" class=\"xref\">842-20-35-12A through 35-12C</a></div></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2023-01/\" class=\"xref\">Accounting Standards Update No. 2023-01</a></td><td class=\"entry\">03/27/2023</td></tr><tr><td class=\"entry\"><a href=\"/asc/842/20/#842-20-35-13\" class=\"xref\">842-20-35-13</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2023-05/\" class=\"xref\">Accounting Standards Update No. 2023-05</a></td><td class=\"entry\">08/23/2023</td></tr><tr><td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-40-1\" class=\"xref\">842-20-40-1 through 40-3</a></div></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-45-1\" class=\"xref\">842-20-45-1 through 45-5</a></div></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/842/20/#842-20-50-1\" class=\"xref\">842-20-50-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2021-09/\" class=\"xref\">Accounting Standards Update No. 2021-09</a></td><td class=\"entry\">11/11/2021</td></tr><tr><td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-50-1\" class=\"xref\">842-20-50-1 through 50-9</a></div></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/842/20/#842-20-50-4\" class=\"xref\">842-20-50-4</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2024-03/\" class=\"xref\">Accounting Standards Update No. 2024-03</a></td><td class=\"entry\">11/04/2024</td></tr><tr><td class=\"entry\"><a href=\"/asc/842/20/#842-20-50-7A\" class=\"xref\">842-20-50-7A</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2023-01/\" class=\"xref\">Accounting Standards Update No. 2023-01</a></td><td class=\"entry\">03/27/2023</td></tr><tr><td class=\"entry\"><a href=\"/asc/842/20/#842-20-50-10\" class=\"xref\">842-20-50-10</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2021-09/\" class=\"xref\">Accounting Standards Update No. 2021-09</a></td><td class=\"entry\">11/11/2021</td></tr><tr><td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-1\" class=\"xref\">842-20-55-1 through 55-53</a></div></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\nAcquiree | Added | Accounting Standards Update No. 2016-02 | 02/25/2016 |\nAcquirer | Amended | A…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:beeeb7720d9e5ac580406e52ce8fca0cccf9a11c9fe6851e740acbe846316e85","downloaded_from":"2026-09-10T01:56:28.044Z","last_downloaded_at":"2026-09-10T01:56:28.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479802","source_sha256":"0582b638896f0d5ef7674652c0f643274b8f221ca53e24a138d6fd42aa0d57d9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4247a2292348a1876b6122bfc3c13a65852f83c7e65708c74da9b8ded7645655","downloaded_from":"2026-09-10T01:56:28.044Z","last_downloaded_at":"2026-09-10T01:56:28.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479802","source_sha256":"0582b638896f0d5ef7674652c0f643274b8f221ca53e24a138d6fd42aa0d57d9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53d4fd983f5289514c4368cb196a1044298cb2ed5f9e70e05874786ec6b348d1","downloaded_from":"2026-09-10T01:56:28.044Z","last_downloaded_at":"2026-09-10T01:56:28.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479802","source_sha256":"0582b638896f0d5ef7674652c0f643274b8f221ca53e24a138d6fd42aa0d57d9"}},{"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"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"842-20-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4156086-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic.</span></span> </div> </div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b1e0b5c7553c12222cb4f9484a0143ab5e3bf4c1eb80736d57bc412651ed6d56","downloaded_from":"2026-09-10T01:56:32.937Z","last_downloaded_at":"2026-09-10T01:56:32.937Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479588","source_sha256":"cae6c01981c60889e8b5bafc308d76fc73527c2237b41ae6f06b646f0d7c6c8e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4eed54546854057bf58ecf0ceceef0520f6246afa2d0b84946bc1c4e1b547386","downloaded_from":"2026-09-10T01:56:32.937Z","last_downloaded_at":"2026-09-10T01:56:32.937Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479588","source_sha256":"cae6c01981c60889e8b5bafc308d76fc73527c2237b41ae6f06b646f0d7c6c8e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41cd1fb96ce40f20dc570b784884fbbd3b39d78ab51c757fd93d2662fc95ec0e","downloaded_from":"2026-09-10T01:56:32.937Z","last_downloaded_at":"2026-09-10T01:56:32.937Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479588","source_sha256":"cae6c01981c60889e8b5bafc308d76fc73527c2237b41ae6f06b646f0d7c6c8e"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"842-20-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E42C1B24-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>, a <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>lessee</span></a> shall recognize a <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> and a <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a>.</span></span> </div> </div>","snippet":"At the commencement date, a lessee shall recognize a right-of-use asset and a lease liability.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef3d7f440b1af531f868b9e8d2ebe9124cbdaa3d5414aa83746417c178198722","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c76990a4a5cb53c23b2c644cc0e55004be41247ef5a1f7d4203275609796d722","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}},{"block":null,"heading":"Short-Term Leases","paragraphs":[{"citation":"842-20-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E42C1CAC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">As an accounting policy, a <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>lessee</span></a> may elect not to apply the recognition requirements in this Subtopic to <a href=\"/glossary/s/#short-term-lease\" class=\"term\" title=\"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.\"><span>short-term leases</span></a>. Instead, a lessee may recognize the <a href=\"/glossary/l/#lease-payments\" class=\"term\" title=\"See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.\"><span>lease payments</span></a> in profit or loss on a straight-line basis over the <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a> and <a href=\"/glossary/v/#variable-lease-payments\" class=\"term\" title=\"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.\"><span>variable lease payments</span></a> in the period in which the obligation for those payments is incurred (consistent with paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-1\" class=\"xref\">842-20-55-1 through 55-2</a></div>). The accounting policy election for short-term leases shall be made by class of <a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"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.\"><span>underlying asset</span></a> to which the right of use relates.</span></span> </div> </div>","snippet":"As an accounting policy, a lessee may elect not to apply the recognition requirements in this Subtopic to short-term leases. Instead, a lessee may recognize the lease payments in profit or loss on a straight-line basis o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9014aa9c1f9fa325b0d9d486c57aac8c6ec2f04666bc3d5531d8564d0fa5b757","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}},{"citation":"842-20-25-3","para":"25-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E42C1DF7-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the lease term or the assessment of a lessee option to purchase the underlying asset changes such that, after the change, the remaining lease term extends more than 12 months from the end of the previously determined lease term or the lessee is reasonably certain to exercise its option to purchase the underlying asset, the lease no longer meets the definition of a short-term lease and the lessee shall apply the remainder of the guidance in this Topic as if the date of the change in circumstances is the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>.</span></span> </div> </div>","snippet":"If the lease term or the assessment of a lessee option to purchase the underlying asset changes such that, after the change, the remaining lease term extends more than 12 months from the end of the previously determined …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b27e44885dd33d3b55f6e9e7a70b2a26a49709a33cbbb9573ad13d8b7a1f740c","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}},{"citation":"842-20-25-4","para":"25-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E42C1F2B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">See Example 1 (paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-13\" class=\"xref\">842-20-55-13 through 55-16</a></div>) for an illustration of the requirements on short-term leases.</span></span> </div> </div>","snippet":"See Example 1 (paragraphs 842-20-55-13 through 55-16) for an illustration of the requirements on short-term leases.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93b38f2f3e8a884662a329007c1fae114679e00ef1cdb76a9ffa7e7eaad2cb95","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c94ed633fc19fd83b879f83922378bd79976d419b783bb72874d299496ae2245","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}},{"block":null,"heading":"Finance Leases","paragraphs":[{"citation":"842-20-25-5","para":"25-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E42C206E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">After the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>, a <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>lessee</span></a> shall recognize in profit or loss, unless the costs are included in the carrying amount of another asset in accordance with other Topics:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C2193-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amortization of the <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> and interest on the <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a></span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C22CA-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> <a href=\"/glossary/v/#variable-lease-payments\" class=\"term\" title=\"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.\"><span>Variable lease payments</span></a> not included in the lease liability in the period in which the obligation for those payments is incurred (see paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-1\" class=\"xref\">842-20-55-1 through 55-2</a></div>)</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">c</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C23F0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Any impairment of the right-of-use asset determined in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-9\" class=\"xref\">842-20-35-9</a>.</span></span> </div> </li> </ol> </div> </div>","snippet":"After the commencement date, a lessee shall recognize in profit or loss, unless the costs are included in the carrying amount of another asset in accordance with other Topics:\n(a) Amortization of the right-of-use asset a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a7b260a0fb8a45dd261229a6cf0172fca0c1b198367cefa6fd464bca60ed1740","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a9e6cda1ebe92ed459227533b5fb8f295fc758e7d5b74e58f10aea49f3602f2","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}},{"block":null,"heading":"Operating Leases","paragraphs":[{"citation":"842-20-25-6","para":"25-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E42C2518-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">After the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>, a <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>lessee</span></a> shall recognize all of the following in profit or loss, unless the costs are included in the carrying amount of another asset in accordance with other Topics:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C2652-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A single lease cost, calculated so that the remaining cost of the <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>lease</span></a> (as described in paragraph <a href=\"/asc/842/20/#842-20-25-8\" class=\"xref\">842-20-25-8</a>) is allocated over the remaining <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a> on a straight-line basis unless another systematic and rational basis is more representative of the pattern in which benefit is expected to be derived from the right to use the <a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"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.\"><span>underlying asset</span></a> (see paragraph <a href=\"/asc/842/20/#842-20-55-3\" class=\"xref\">842-20-55-3</a>), unless the <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> has been impaired in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-9\" class=\"xref\">842-20-35-9</a>, in which case the single lease cost is calculated in accordance with paragraph <a href=\"/asc/842/20/#842-20-25-7\" class=\"xref\">842-20-25-7</a></span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C2787-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> <a href=\"/glossary/v/#variable-lease-payments\" class=\"term\" title=\"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.\"><span>Variable lease payments</span></a> not included in the <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a> in the period in which the obligation for those payments is incurred (see paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-1\" class=\"xref\">842-20-55-1 through 55-2</a></div>)</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">c</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C28A5-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Any impairment of the right-of-use asset determined in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-9\" class=\"xref\">842-20-35-9</a>.</span></span> </div> </li> </ol> </div> </div>","snippet":"After the commencement date, a lessee shall recognize all of the following in profit or loss, unless the costs are included in the carrying amount of another asset in accordance with other Topics:\n(a) A single lease cost…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf52d49ee71aaa210cc3ad0500583574ff23bec1afb9fd534f537311dee14c39","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}},{"citation":"842-20-25-7","para":"25-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E42C2A01-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">After a right-of-use asset has been impaired in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-9\" class=\"xref\">842-20-35-9</a>, the single lease cost described in paragraph <a href=\"/asc/842/20/#842-20-25-6\" class=\"xref\">842-20-25-6(a)</a> shall be calculated as the sum of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C2B0B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amortization of the remaining balance of the right-of-use asset after the impairment on a straight-line basis, unless another systematic basis is more representative of the pattern in which the lessee expects to consume the remaining economic benefits from its right to use the underlying asset</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C2C0E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Accretion of the lease liability, determined for each remaining period during the lease term as the amount that produces a constant periodic discount rate on the remaining balance of the liability.</span></span> </div> </li> </ol> </div> </div>","snippet":"After a right-of-use asset has been impaired in accordance with paragraph 842-20-35-9, the single lease cost described in paragraph 842-20-25-6(a) shall be calculated as the sum of the following:\n(a) Amortization of the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:44a011a9c30128e630f01173326dd8605fdaa08d1e4c40fe7a1cdf898531460e","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}},{"citation":"842-20-25-8","para":"25-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E42C2D4B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Throughout the lease term, the remaining cost of an <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 lease</span></a> for which the right-of-use asset has not been impaired consists of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C2E53-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The total <a href=\"/glossary/l/#lease-payments\" class=\"term\" title=\"See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.\"><span>lease payments</span></a> (including those paid and those not yet paid), reflecting any adjustment to that total amount resulting from either a remeasurement in accordance with paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/10/#842-10-35-4\" class=\"xref\">842-10-35-4 through 35-5</a></div> or a <a href=\"/glossary/l/#lease-modification\" class=\"term\" title=\"A change to the terms and conditions of a contract that results in a change in the scope of or the consideration for a lease (for example, a change to the terms and conditions of the contract that adds or terminates the right to use one or more underlying assets or extends or shortens the contractual lease term).\"><span>lease modification</span></a>; plus</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C2F50-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The total <a href=\"/glossary/i/#initial-direct-costs\" class=\"term\" title=\"Incremental costs of a lease that would not have been incurred if the lease had not been obtained.\"><span>initial direct costs</span></a> attributable to the lease; minus</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">c</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E42C303C-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The periodic lease cost recognized in prior periods.</span></span> </div> </li> </ol> </div> </div>","snippet":"Throughout the lease term, the remaining cost of an operating lease for which the right-of-use asset has not been impaired consists of the following:\n(a) The total lease payments (including those paid and those not yet p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:140f84f80149153255ba53ff121900f3f4ce1d03a228fb7a567ac2b5e5c89e04","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:90099ebc65d09dfc9a7e8ca3fdc59e708192b8a47127c334715fd7c63f96a028","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5499017552d3b6fbd32a146c420d3e2ed3ede345043089c88e5dc188fcb2125b","downloaded_from":"2026-09-10T01:56:38.192Z","last_downloaded_at":"2026-09-10T01:56:38.192Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479365","source_sha256":"034f99fc778f91d6f01ea7dbcfe5bd8b5b741e42473b822ebb2fff6baa7bb112"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"842-20-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E440B2B8-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>, a <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>lessee</span></a> shall measure both of the following:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E440B42F-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a> at the present value of the <a href=\"/glossary/l/#lease-payments\" class=\"term\" title=\"See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.\"><span>lease payments</span></a> not yet paid, discounted using the <a href=\"/glossary/d/#discount-rate-for-the-lease\" class=\"term\" title=\"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.\"><span>discount rate for the lease</span></a> at lease commencement (as described in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-30-2\" class=\"xref\">842-20-30-2 through 30-4</a></div>) </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E440B580-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> as described in paragraph <a href=\"/asc/842/20/#842-20-30-5\" class=\"xref\">842-20-30-5</a>.</span></span></div></li></ol></div></div>","snippet":"At the commencement date, 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 the lease at lease commencem…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ccfc5b095bdccd18b0a404ab218c24d6c5c560220f36c2fb05abd156b84eed8","downloaded_from":"2026-09-10T01:56:41.579Z","last_downloaded_at":"2026-09-10T01:56:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479269","source_sha256":"a264ab64b6c60bebcf94557ad0149a14f52134ad842f8563260ca79d829a5c01"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:859c622077905dbea0137897c295f546c37910de878f476bace9b3a70007c29f","downloaded_from":"2026-09-10T01:56:41.579Z","last_downloaded_at":"2026-09-10T01:56:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479269","source_sha256":"a264ab64b6c60bebcf94557ad0149a14f52134ad842f8563260ca79d829a5c01"}},{"block":null,"heading":"Discount Rate for the Lease","paragraphs":[{"citation":"842-20-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E440B738-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/d/#discount-rate-for-the-lease\" class=\"term\" title=\"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.\"><span>discount rate for the lease</span></a> initially used to determine the present value of the <a href=\"/glossary/l/#lease-payments\" class=\"term\" title=\"See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.\"><span>lease payments</span></a> for a <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>lessee</span></a> is calculated on the basis of information available at the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>.</span></span></div></div>","snippet":"The discount rate for the lease initially used to determine the present value of the lease payments for a lessee is calculated on the basis of information available at the commencement date.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:371afc67fb8e3a80a14fb8a007ca1bd322c57e94687e092ba93723a3750263e8","downloaded_from":"2026-09-10T01:56:41.579Z","last_downloaded_at":"2026-09-10T01:56:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479269","source_sha256":"a264ab64b6c60bebcf94557ad0149a14f52134ad842f8563260ca79d829a5c01"}},{"citation":"842-20-30-3","para":"30-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E440B9E3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A lessee should use the <a href=\"/glossary/r/#rate-implicit-in-the-lease\" class=\"term\" title=\"The rate of interest that, at a given date, causes the aggregate present value of (a) the lease paymentsand (b) the amount that a lessor expects to derive from the underlying asset following the end of the lease termto equal the sum of (1) the fair value of the underlying asset minus any related investment tax credit retained and expected to be realized by the lessor and (2) any deferred initial direct costs of the lessor. However, if the rate determined in accordance with the preceding sentence is less than zero, a rate implicit in the lease of zero shall be used.\"><span>rate implicit in the lease</span></a> whenever that rate is readily determinable. If the rate implicit in the lease is not readily determinable, a lessee uses its <a href=\"/glossary/i/#incremental-borrowing-rate\" class=\"term\" title=\"The rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.\"><span>incremental borrowing rate</span></a>. A lessee that is not a public business entity is permitted to use a risk-free discount rate for the lease </span></span><span class=\"sfragment\" id=\"sfr_E440BAFA-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">instead of its incremental borrowing rate, </span></span><span class=\"sfragment\" id=\"sfr_E440BC03-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">determined using a period comparable with that of the <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a>, as an accounting policy election </span></span><span class=\"sfragment\" id=\"sfr_E440BD1E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">made by class of underlying asset.</span></span></div></div>","snippet":"A lessee should use the rate implicit in the lease whenever that rate is readily determinable. If the rate implicit in the lease is not readily determinable, a lessee uses its incremental borrowing rate. A lessee that is…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:04597f7f9a74c367f14806b942dfca8f2e2917487fef35d0c23f0ee715cc2914","downloaded_from":"2026-09-10T01:56:41.579Z","last_downloaded_at":"2026-09-10T01:56:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479269","source_sha256":"a264ab64b6c60bebcf94557ad0149a14f52134ad842f8563260ca79d829a5c01"}},{"citation":"842-20-30-4","para":"30-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E440BE3E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">See Example 2 (paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-17\" class=\"xref\">842-20-55-17 through 55-20</a></div>) for an illustration of the requirements on the discount rate.</span></span></div></div>","snippet":"See Example 2 (paragraphs 842-20-55-17 through 55-20) for an illustration of the requirements on the discount rate.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c2c74a73cdd1cf408314e85448266dfd835c1772adb731a2e2caf61106d7ff8","downloaded_from":"2026-09-10T01:56:41.579Z","last_downloaded_at":"2026-09-10T01:56:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479269","source_sha256":"a264ab64b6c60bebcf94557ad0149a14f52134ad842f8563260ca79d829a5c01"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:01e86f85b0985850daa1683d7a8d6fcc0c4514634c5caa21a493ea73083eabf2","downloaded_from":"2026-09-10T01:56:41.579Z","last_downloaded_at":"2026-09-10T01:56:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479269","source_sha256":"a264ab64b6c60bebcf94557ad0149a14f52134ad842f8563260ca79d829a5c01"}},{"block":null,"heading":"Initial Measurement of the Right-of-Use Asset","paragraphs":[{"citation":"842-20-30-5","para":"30-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E440BF6B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>, the cost of the <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> shall consist of all of the following:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E440C113-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The amount of the initial measurement of the <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a></span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E440C242-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Any <a href=\"/glossary/l/#lease-payments\" class=\"term\" title=\"See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.\"><span>lease payments</span></a> made to the <a href=\"/glossary/l/#lessor\" class=\"term\" title=\"An entity that enters into a contract to provide the right to use an underlying asset for a period of time in exchange for consideration.\"><span>lessor</span></a> at or before the commencement date, minus any lease incentives received</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E440C396-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Any <a href=\"/glossary/i/#initial-direct-costs\" class=\"term\" title=\"Incremental costs of a lease that would not have been incurred if the lease had not been obtained.\"><span>initial direct costs</span></a> incurred by the <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>lessee</span></a> (as described in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/10/#842-10-30-9\" class=\"xref\">842-10-30-9 through 30-10</a></div>).</span></span></div></li></ol></div></div>","snippet":"At the commencement date, the cost of the right-of-use asset shall consist of all of the following:\n(a) The amount of the initial measurement of the lease liability\n(b) Any lease payments made to the lessor at or before …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:11a22e13e976a31187d5004b15fa80d6e5521746addfd0e4204bd87122e4c800","downloaded_from":"2026-09-10T01:56:41.579Z","last_downloaded_at":"2026-09-10T01:56:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479269","source_sha256":"a264ab64b6c60bebcf94557ad0149a14f52134ad842f8563260ca79d829a5c01"}},{"citation":"842-20-30-6","para":"30-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E440C4C8-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">See Example 3 (paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-21\" class=\"xref\">842-20-55-21 through 55-39</a></div>) for an illustration of the requirements on lessee measurement of the <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a>.</span></span></div></div>","snippet":"See Example 3 (paragraphs 842-20-55-21 through 55-39) for an illustration of the requirements on lessee measurement of the lease term.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1d325ef6aada938309e3e5e883f9fdf6652e296aa819c095a3943be546b06ecf","downloaded_from":"2026-09-10T01:56:41.579Z","last_downloaded_at":"2026-09-10T01:56:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479269","source_sha256":"a264ab64b6c60bebcf94557ad0149a14f52134ad842f8563260ca79d829a5c01"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd0e98d1782f5951aacb23251420c9602e90b968f38e9b00f11687a77286f3af","downloaded_from":"2026-09-10T01:56:41.579Z","last_downloaded_at":"2026-09-10T01:56:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479269","source_sha256":"a264ab64b6c60bebcf94557ad0149a14f52134ad842f8563260ca79d829a5c01"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7f4378b2ab0b99e58c22a177fa101b942fa18bf3ad7953a7cd6878ca2c053871","downloaded_from":"2026-09-10T01:56:41.579Z","last_downloaded_at":"2026-09-10T01:56:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479269","source_sha256":"a264ab64b6c60bebcf94557ad0149a14f52134ad842f8563260ca79d829a5c01"}},{"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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456C8B2-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">After the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>, for a <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 lease</span></a>, a <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>lessee</span></a> shall measure both of the following:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456CAB0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a> by increasing the carrying amount to reflect interest on the lease liability and reducing the carrying amount to reflect the <a href=\"/glossary/l/#lease-payments\" class=\"term\" title=\"See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.\"><span>lease payments</span></a> made during the period. The lessee shall determine the interest on the lease liability in each period during the <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a> 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 <div class=\"xref-range displayInline\"><a href=\"/asc/842/10/#842-10-35-1\" class=\"xref\">842-10-35-1 through 35-5</a></div>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456CC3F-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> at cost less any accumulated amortization and any accumulated impairment losses, taking into consideration the reassessment requirements in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/10/#842-10-35-1\" class=\"xref\">842-10-35-1 through 35-5</a></div>.</span></span></div></li></ol></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456CD40-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 <a href=\"/asc/842/20/#842-20-25-5\" class=\"xref\">842-20-25-5</a>.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456CE21-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">After the commencement date, for an <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 lease</span></a>, a lessee shall measure both of the following:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456CEF5-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The lease liability at the present value of the lease payments not yet paid discounted using the <a href=\"/glossary/d/#discount-rate-for-the-lease\" class=\"term\" title=\"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.\"><span>discount rate for the lease</span></a> established at the commencement date (unless the rate has been updated after the commencement date in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-5\" class=\"xref\">842-20-35-5</a>, in which case that updated rate shall be used)</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456CFD0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 <a href=\"/asc/842/20/#842-20-35-10\" class=\"xref\">842-20-35-10</a> after the impairment:</span></span></div><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">1</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456D0A1-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Prepaid or accrued lease payments</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">2</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456D17A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 <a href=\"/asc/842/20/#842-20-25-6\" class=\"xref\">842-20-25-6(a)</a></span></span></div></li><li class=\"li-norm\"><span class=\"linum\">3</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456D251-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Unamortized <a href=\"/glossary/i/#initial-direct-costs\" class=\"term\" title=\"Incremental costs of a lease that would not have been incurred if the lease had not been obtained.\"><span>initial direct costs</span></a></span></span></div></li><li class=\"li-norm\"><span class=\"linum\">4</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456D31A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Impairment of the right-of-use asset.</span></span></div></li></ol></li></ol></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456D3FC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">After the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>, a <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>lessee</span></a> shall remeasure the <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a> to reflect changes to the <a href=\"/glossary/l/#lease-payments\" class=\"term\" title=\"See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.\"><span>lease payments</span></a> as described in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/10/#842-10-35-4\" class=\"xref\">842-10-35-4 through 35-5</a></div>. A lessee shall recognize the amount of the remeasurement of the lease liability as an adjustment to the <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a>. 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.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456D4DC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If there is a remeasurement of the lease liability in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-4\" class=\"xref\">842-20-35-4</a>, the lessee shall update the <a href=\"/glossary/d/#discount-rate-for-the-lease\" class=\"term\" title=\"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.\"><span>discount rate for the lease</span></a> at the date of remeasurement on the basis of the remaining <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a> and the remaining lease payments unless the remeasurement of the lease liability is the result of one of the following:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456D5CE-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A change in the lease term or the assessment of whether the lessee will exercise an option to purchase the <a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"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.\"><span>underlying asset</span></a> and the discount rate for the lease already reflects that the lessee has an option to extend or terminate the <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>lease</span></a> or to purchase the underlying asset. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456D6CD-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A change in amounts <a href=\"/glossary/p/#probable\" class=\"term\" title=\"The future event or events are likely to occur.\"><span>probable</span></a> of being owed by the lessee under a <a href=\"/glossary/r/#residual-value-guarantee\" class=\"term\" title=\"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.\"><span>residual value guarantee</span></a> (see paragraph <a href=\"/asc/842/10/#842-10-35-4\" class=\"xref\">842-10-35-4(c)(3)</a>).</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456D7C3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A change in the lease payments resulting from the resolution of a contingency upon which some or all of the <a href=\"/glossary/v/#variable-lease-payments\" class=\"term\" title=\"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.\"><span>variable lease payments</span></a> that will be paid over the remainder of the lease term are based (see paragraph <a href=\"/asc/842/10/#842-10-35-4\" class=\"xref\">842-10-35-4(b)</a>).</span></span></div></li></ol></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456D8D0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">See Examples 3 and 4 (paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-21\" class=\"xref\">842-20-55-21 through 55-46</a></div>) for an illustration of the requirements on lessee subsequent measurement.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456D9EB-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A <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>lessee</span></a> shall amortize the <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> 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 <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a> is remeasured and the right-of-use asset is adjusted in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-4\" class=\"xref\">842-20-35-4</a>, amortization of the right-of-use asset shall be adjusted prospectively from the date of remeasurement.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456DB3B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A lessee shall amortize the right-of-use asset from the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a> to the earlier of the end of the <a href=\"/glossary/u/#useful-life\" class=\"term\" title=\"The period over which an asset is expected to contribute directly or indirectly to future cash flows.\"><span>useful life</span></a> of the right-of-use asset or the end of the <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a>. However, if the <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>lease</span></a> transfers ownership of the <a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"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.\"><span>underlying asset</span></a> 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.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456DC3A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A <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>lessee</span></a> shall determine whether a <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> is impaired and shall recognize any impairment loss in accordance with Section <a altsource=\"GUID-DB49B5A7-DC7E-40FE-86DC-A5103AAF103A.ditamap\" class=\"ditamap\">360-10-35</a> on impairment or disposal of long-lived assets.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456DD24-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If a right-of-use asset is impaired in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-9\" class=\"xref\">842-20-35-9</a>, 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 <a href=\"/asc/842/20/#842-20-25-7\" class=\"xref\">842-20-25-7</a> (for an <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 lease</span></a>) or paragraph <a href=\"/asc/842/20/#842-20-35-7\" class=\"xref\">842-20-35-7</a> (for a <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 lease</span></a>), the right-of-use asset from the date of the impairment to the earlier of the end of the <a href=\"/glossary/u/#useful-life\" class=\"term\" title=\"The period over which an asset is expected to contribute directly or indirectly to future cash flows.\"><span>useful life</span></a> of the right-of-use asset or the end of the <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a>.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456DE14-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">See Example 5 (paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-47\" class=\"xref\">842-20-55-47 through 55-51</a></div>) for an illustration of the requirements for impairment of a right-of-use asset.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-EE65DFCE-9EE8-43FF-8D36-515A935991DC\"><span class=\"sfragment-source\">Leasehold improvements, </span></span><span class=\"sfragment\" id=\"GUID-2B543B5A-05C0-4587-B504-F7BDA5FC8BCA\"><span class=\"sfragment-source\">other than those accounted for in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-12A\" class=\"xref\">842-20-35-12A</a>, </span></span><span class=\"sfragment\" id=\"GUID-FEBC761F-BA1D-455B-83ED-655209002D07\"><span class=\"sfragment-source\">shall be amortized over the shorter of the <a href=\"/glossary/u/#useful-life\" class=\"term\" title=\"The period over which an asset is expected to contribute directly or indirectly to future cash flows.\"><span>useful life</span></a> of those leasehold improvements and the remaining <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a>, unless the <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>lease</span></a> transfers ownership of the <a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"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.\"><span>underlying asset</span></a> to the <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>lessee</span></a> 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.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-EEEA6D31-9260-40D4-9C5A-4E9001199B33\"><span class=\"sfragment-source\">Leasehold improvements associated with a lease between entities under common control shall be:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-93E2256E-5189-4CA2-9033-5163301987A1\"><span class=\"sfragment-source\">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 <a href=\"/glossary/l/#lessor\" class=\"term\" title=\"An entity that enters into a contract to provide the right to use an underlying asset for a period of time in exchange for consideration.\"><span>lessor</span></a> 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 <a href=\"/asc/842/20/#842-20-35-12\" class=\"xref\">842-20-35-12</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-F27167E8-AB8F-4446-8B9A-24BB8155F99B\"><span class=\"sfragment-source\">Accounted for as a transfer between entities under common control through an adjustment to equity (net assets for a <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.\"><span>not-for-profit entity</span></a>) when the lessee no longer controls the use of the underlying asset. </span></span></div></li></ol></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-E98AE41C-82B3-46ED-87FA-AD093114F13D\"><span class=\"sfragment-source\">An entity with leasehold improvements accounted for in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-12A\" class=\"xref\">842-20-35-12A</a> shall apply the impairment requirements in paragraph <a href=\"/asc/360/10/#360-10-40-4\" class=\"xref\">360-10-40-4</a>, considering the useful life to the common control group. </span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-C7D4CB23-BB28-467F-9AAA-B56B5CD118E8\"><span class=\"sfragment-source\">If after the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a> 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 <a href=\"/glossary/c/#change-in-accounting-estimate\" class=\"term\" title=\"A change that has the effect of adjusting the carrying amount of an existing asset or liability or altering the subsequent accounting for existing or future assets or liabilities. A change in accounting estimate is a necessary consequence of the assessment, in conjunction with the periodic presentation of financial statements, of the present status and expected future benefits and obligations associated with assets and liabilities. Changes in accounting estimates result from new information. Examples of items for which estimates are necessary are uncollectible receivables, inventory obsolescence, service lives and salvage values of depreciable assets, and warranty obligations.\"><span>change in accounting estimate</span></a> in accordance with paragraph <a href=\"/asc/250/10/#250-10-45-17\" class=\"xref\">250-10-45-17</a>.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-D10D11E1-24BC-4844-8BA2-83EAD1233FB1\"><span class=\"sfragment-source\">Leasehold improvements acquired in a <a href=\"/glossary/b/#business-combination\" class=\"term\" title=\"A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.\"><span>business combination</span></a>, acquired in an <a href=\"/glossary/a/#acquisition-by-a-not-for-profit-entity\" class=\"term\" title=\"A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities.\"><span>acquisition by a not-for-profit entity</span></a>, </span></span><span class=\"sfragment\" id=\"GUID-842F935E-9B47-4801-A040-5F0EE747F71A\"><span class=\"sfragment-source\">or recognized by a <a href=\"/glossary/j/#joint-venture\" class=\"term\" title=\"An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.\"><span>joint venture</span></a> upon formation </span></span><span class=\"sfragment\" id=\"GUID-03B58FE0-B271-4FAD-B42E-FA986E414289\"><span class=\"sfragment-source\">shall be amortized over the shorter of the useful life of the assets and the remaining lease term at the date of acquisition.</span></span></div></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456E0D0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the nature of a <a href=\"/glossary/s/#sublease\" class=\"term\" title=\"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.\"><span>sublease</span></a> is such that the original <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>lessee</span></a> is not relieved of the primary obligation under the original <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>lease</span></a>, the original lessee (as sublessor) shall continue to account for the original lease in one of the following ways:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456E19A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the sublease is classified as an <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 lease</span></a>, 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 <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> associated with the original lease may not be recoverable in accordance with paragraph <a href=\"/asc/360/10/#360-10-35-21\" class=\"xref\">360-10-35-21</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456E308-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the original lease is classified as a <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 lease</span></a> and the sublease is classified as a <a href=\"/glossary/s/#sales-type-lease\" class=\"term\" title=\"From the perspective of a lessor, a lease that meets one or more of the criteria in paragraph 842-10-25-2 and is not an operating lease in accordance with paragraph 842-10-25-3A.\"><span>sales-type lease</span></a> or a <a href=\"/glossary/d/#direct-financing-leases\" class=\"term\" title=\"Glossary term superseded by Accounting Standards Update No. 2016-02.\"><span>direct financing lease</span></a>, the original lessee shall derecognize the original right-of-use asset in accordance with paragraph <a href=\"/asc/842/30/#842-30-40-1\" class=\"xref\">842-30-40-1</a> and continue to account for the original <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a> as it did before commencement of the sublease. The original lessee shall evaluate its investment in the sublease for impairment in accordance with paragraph <a href=\"/asc/842/30/#842-30-35-3\" class=\"xref\">842-30-35-3</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E456E3D2-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 <a href=\"/asc/842/30/#842-30-40-1\" class=\"xref\">842-30-40-1</a> and, from the sublease <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>, account for the original lease liability in accordance with paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-35-1\" class=\"xref\">842-20-35-1 through 35-2</a></div>. The original lessee shall evaluate its investment in the sublease for impairment in accordance with paragraph <a href=\"/asc/842/30/#842-30-35-3\" class=\"xref\">842-30-35-3</a>.</span></span></div></li></ol></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E456E49C-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The original lessee (as sublessor) in a sublease shall use the <a href=\"/glossary/r/#rate-implicit-in-the-lease\" class=\"term\" title=\"The rate of interest that, at a given date, causes the aggregate present value of (a) the lease paymentsand (b) the amount that a lessor expects to derive from the underlying asset following the end of the lease termto equal the sum of (1) the fair value of the underlying asset minus any related investment tax credit retained and expected to be realized by the lessor and (2) any deferred initial direct costs of the lessor. However, if the rate determined in accordance with the preceding sentence is less than zero, a rate implicit in the lease of zero shall be used.\"><span>rate implicit in the lease</span></a> 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 <a href=\"/glossary/d/#discount-rate-for-the-lease\" class=\"term\" title=\"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.\"><span>discount rate for the lease</span></a> established for the original (or head) lease.</span></span></div></div>","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"}},{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":"Lease Termination","paragraphs":[{"citation":"842-20-40-1","para":"40-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4679FD8-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A termination of a <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>lease</span></a> before the expiration of the <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a> shall be accounted for by the <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>lessee</span></a> by removing the <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> and the <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a>, with profit or loss recognized for the difference.</span></span> </div> </div>","snippet":"A termination of a lease before the expiration of the lease term shall be accounted for by the lessee by removing the right-of-use asset and the lease liability, with profit or loss recognized for the difference.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:024d22b87882fe90f83ef320d38b4a1594ef4e8654cc649dcd9523bcafd6c4aa","downloaded_from":"2026-09-10T01:56:47.806Z","last_downloaded_at":"2026-09-10T01:56:47.806Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479092","source_sha256":"615c7e2222d740dc772a07f970521f29a48a504651aa85e37d25a693ef48fbe7"}},{"citation":"842-20-40-2","para":"40-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E467A175-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The termination of a <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>lease</span></a> that results from the purchase of an <a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"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.\"><span>underlying asset</span></a> by the <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>lessee</span></a> is not the type of termination of a lease contemplated by paragraph <a href=\"/asc/842/20/#842-20-40-1\" class=\"xref\">842-20-40-1</a> but, rather, is an integral part of the purchase of the underlying asset. If the lessee purchases the underlying asset, any difference between the purchase price and the carrying amount of the lease liability immediately before the purchase shall be recorded by the lessee as an adjustment of the carrying amount of the asset. However, this paragraph does not apply to underlying assets acquired in a <a href=\"/glossary/b/#business-combination\" class=\"term\" title=\"A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.\"><span>business combination</span></a>, which are initially measured at <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.\"><span>fair value</span></a> in accordance with paragraph <a href=\"/asc/805/20/#805-20-30-1\" class=\"xref\">805-20-30-1</a>.</span></span> </div> </div>","snippet":"The termination of a lease that results from the purchase of an underlying asset by the lessee is not the type of termination of a lease contemplated by paragraph 842-20-40-1 but, rather, is an integral part of the purch…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4605da6f3227a942c5bf3f2fa433c548ef1f9c284d946a9c9af12d3d02b54f81","downloaded_from":"2026-09-10T01:56:47.806Z","last_downloaded_at":"2026-09-10T01:56:47.806Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479092","source_sha256":"615c7e2222d740dc772a07f970521f29a48a504651aa85e37d25a693ef48fbe7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4dfcefe7d26ecd1b53f4efbbcf5f3b73ec92741f6afe0e52cbadf142ef3f438","downloaded_from":"2026-09-10T01:56:47.806Z","last_downloaded_at":"2026-09-10T01:56:47.806Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479092","source_sha256":"615c7e2222d740dc772a07f970521f29a48a504651aa85e37d25a693ef48fbe7"}},{"block":null,"heading":"Subleases","paragraphs":[{"citation":"842-20-40-3","para":"40-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E467A2D4-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the nature of a <a href=\"/glossary/s/#sublease\" class=\"term\" title=\"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.\"><span>sublease</span></a> is such that the original <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>lessee</span></a> is relieved of the primary obligation under the original <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>lease</span></a>, the transaction shall be considered a termination of the original lease. Paragraph <a href=\"/asc/842/20/#842-20-35-14\" class=\"xref\">842-20-35-14</a> addresses subleases in which the original lessee is not relieved of the primary obligation under the original lease. Any consideration paid or received upon termination that was not already included in the <a href=\"/glossary/l/#lease-payments\" class=\"term\" title=\"See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.\"><span>lease payments</span></a> (for example, a termination payment that was not included in the lease payments based on the <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a>) shall be included in the determination of profit or loss to be recognized in accordance with paragraph <a href=\"/asc/842/20/#842-20-40-1\" class=\"xref\">842-20-40-1</a>. If a sublease is a termination of the original lease and the original lessee is secondarily liable, the guarantee obligation shall be recognized by the lessee in accordance with paragraph <a href=\"/asc/405/20/#405-20-40-2\" class=\"xref\">405-20-40-2</a>.</span></span> </div> </div>","snippet":"If the nature of a sublease is such that the original lessee is relieved of the primary obligation under the original lease, the transaction shall be considered a termination of the original lease. Paragraph 842-20-35-14…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7fcf2a08c4e18697b2d4c3ae2dd2939d3884f4631d33d74d4a4d45865db569e9","downloaded_from":"2026-09-10T01:56:47.806Z","last_downloaded_at":"2026-09-10T01:56:47.806Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479092","source_sha256":"615c7e2222d740dc772a07f970521f29a48a504651aa85e37d25a693ef48fbe7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:84ac2e43b16b11323277550fbce5e852ccee0bd319e6bd511fe03e06c9a825ab","downloaded_from":"2026-09-10T01:56:47.806Z","last_downloaded_at":"2026-09-10T01:56:47.806Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479092","source_sha256":"615c7e2222d740dc772a07f970521f29a48a504651aa85e37d25a693ef48fbe7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:309b912d5a73ef73687811a49e0a8f461bb86ae12989b4d0f25bf542fc714706","downloaded_from":"2026-09-10T01:56:47.806Z","last_downloaded_at":"2026-09-10T01:56:47.806Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479092","source_sha256":"615c7e2222d740dc772a07f970521f29a48a504651aa85e37d25a693ef48fbe7"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Statement of Financial Position","paragraphs":[{"citation":"842-20-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E47B7EA4-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A <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>lessee</span></a> shall either present in the statement of financial position or disclose in the notes all of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E47B8013-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> <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 lease</span></a> <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use assets</span></a> and <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 lease</span></a> right-of-use assets separately from each other and from other assets</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E47B821C-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Finance <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liabilities</span></a> and operating lease liabilities separately from each other and from other liabilities.</span></span> </div> </li> </ol> <span class=\"sfragment\" id=\"sfr_E47B8353-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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.</span></span> </div> </div>","snippet":"A lessee shall either present in the statement of financial position or disclose in the notes all of the following:\n(a) Finance lease right-of-use assets and operating lease right-of-use assets separately from each other…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:14e85278918a72aa2f838e4c3d0c3ec5dd1931dcfc73fbe1cf7141dd05c2ab9e","downloaded_from":"2026-09-10T01:56:51.193Z","last_downloaded_at":"2026-09-10T01:56:51.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479041","source_sha256":"97b49d3a8d2fa20c73e35f088ae8e6a1dfeba852de187628983d0d5d540a7273"}},{"citation":"842-20-45-2","para":"45-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E47B84A0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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.</span></span> </div> </div>","snippet":"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 f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:908841b1eee360e8fcdf88f330a6ba07678fb10826146121c8eaf1ca7c442d5e","downloaded_from":"2026-09-10T01:56:51.193Z","last_downloaded_at":"2026-09-10T01:56:51.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479041","source_sha256":"97b49d3a8d2fa20c73e35f088ae8e6a1dfeba852de187628983d0d5d540a7273"}},{"citation":"842-20-45-3","para":"45-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E47B85DB-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In the statement of financial position, a lessee is prohibited from presenting both of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E47B8716-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Finance lease right-of-use assets in the same line item as operating lease right-of-use assets</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E47B8834-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Finance lease liabilities in the same line item as operating lease liabilities.</span></span> </div> </li> </ol> </div> </div>","snippet":"In the statement of financial position, a lessee is prohibited from presenting both of the following:\n(a) Finance lease right-of-use assets in the same line item as operating lease right-of-use assets\n(b) Finance lease l…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9094e7b80d6796f932d02c0507358823609271ca698e5056052f72a6f8f08dab","downloaded_from":"2026-09-10T01:56:51.193Z","last_downloaded_at":"2026-09-10T01:56:51.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479041","source_sha256":"97b49d3a8d2fa20c73e35f088ae8e6a1dfeba852de187628983d0d5d540a7273"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2fc9aaa18513c7e9a397356465abfaac15db445011828a6d8c1c576dcd8fdf43","downloaded_from":"2026-09-10T01:56:51.193Z","last_downloaded_at":"2026-09-10T01:56:51.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479041","source_sha256":"97b49d3a8d2fa20c73e35f088ae8e6a1dfeba852de187628983d0d5d540a7273"}},{"block":null,"heading":"Statement of Comprehensive Income","paragraphs":[{"citation":"842-20-45-4","para":"45-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E47B8970-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In the statement of comprehensive income, a <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>lessee</span></a> shall present both of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E47B8AAE-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For <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>, the interest expense on the <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a> and amortization of the <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> 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</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E47B8BDE-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For <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>, <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>lease</span></a> expense shall be included in the lessee's income from continuing operations.</span></span> </div> </li> </ol> </div> </div>","snippet":"In the statement of comprehensive income, a lessee shall present both of the following:\n(a) For finance leases, the interest expense on the lease liability and amortization of the right-of-use asset are not required to b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:462979491902f5ac543e3853cf8333e110ca27479d8888225eb4d590a5ab8c97","downloaded_from":"2026-09-10T01:56:51.193Z","last_downloaded_at":"2026-09-10T01:56:51.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479041","source_sha256":"97b49d3a8d2fa20c73e35f088ae8e6a1dfeba852de187628983d0d5d540a7273"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5239dcebf70c76ebf2bd833291d1eb3d439403365fdb6cba6fa3bc558c270a2d","downloaded_from":"2026-09-10T01:56:51.193Z","last_downloaded_at":"2026-09-10T01:56:51.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479041","source_sha256":"97b49d3a8d2fa20c73e35f088ae8e6a1dfeba852de187628983d0d5d540a7273"}},{"block":null,"heading":"Statement of Cash Flows","paragraphs":[{"citation":"842-20-45-5","para":"45-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E47B8D28-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In the statement of cash flows, a <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>lessee</span></a> shall classify all of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E47B8E3E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Repayments of the principal portion of the <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a> arising from <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> within financing activities</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E47B8F62-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Interest on the lease liability arising from finance leases in accordance with the requirements relating to interest paid in Topic <a altsource=\"GUID-7AA86F8F-C9D3-42B2-A494-0F505922BDA6.ditamap\" class=\"ditamap\">230</a> on cash flows</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">c</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E47B9086-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Payments arising from <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> 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</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">d</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E47B9197-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> <a href=\"/glossary/v/#variable-lease-payments\" class=\"term\" title=\"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.\"><span>Variable lease payments</span></a> and <a href=\"/glossary/s/#short-term-lease\" class=\"term\" title=\"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.\"><span>short-term lease</span></a> payments not included in the lease liability within operating activities.</span></span> </div> </li> </ol> </div> </div>","snippet":"In the statement of cash flows, a lessee shall classify all of the following:\n(a) Repayments of the principal portion of the lease liability arising from finance leases within financing activities\n(b) Interest on the lea…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70365eec1631233efc1b67452c3ff6e88ea73175b539407b6b419cc22c199e4b","downloaded_from":"2026-09-10T01:56:51.193Z","last_downloaded_at":"2026-09-10T01:56:51.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479041","source_sha256":"97b49d3a8d2fa20c73e35f088ae8e6a1dfeba852de187628983d0d5d540a7273"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7570ceef133089b89513804f5b3a260d2be0bbd24a0355475cba835d04c9b315","downloaded_from":"2026-09-10T01:56:51.193Z","last_downloaded_at":"2026-09-10T01:56:51.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479041","source_sha256":"97b49d3a8d2fa20c73e35f088ae8e6a1dfeba852de187628983d0d5d540a7273"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a731fd98b6e55d46516de819ac97e06f8d976e7e98bce16febed45b1526dd8eb","downloaded_from":"2026-09-10T01:56:51.193Z","last_downloaded_at":"2026-09-10T01:56:51.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479041","source_sha256":"97b49d3a8d2fa20c73e35f088ae8e6a1dfeba852de187628983d0d5d540a7273"}},{"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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E493BEC0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 <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>. To achieve that objective, a <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>lessee</span></a> shall disclose qualitative and quantitative information about all of the following:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493C032-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Its leases (as described in paragraphs <a href=\"/asc/842/20/#842-20-50-3\" class=\"xref\">842-20-50-3(a) through (b)</a> and <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-50-7\" class=\"xref\">842-20-50-7 through 50-10</a></div>)</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493C188-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The significant judgments made in applying the requirements in this Topic to those leases (as described in paragraph <a href=\"/asc/842/20/#842-20-50-3\" class=\"xref\">842-20-50-3(c)</a>)</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493C2D3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The amounts recognized in the financial statements relating to those leases (as described in paragraphs <a href=\"/asc/842/20/#842-20-50-4\" class=\"xref\">842-20-50-4</a> and <a href=\"/asc/842/20/#842-20-50-6\" class=\"xref\">842-20-50-6</a>).</span></span></div></li></ol></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E493C4F6-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E493C67B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A lessee shall disclose all of the following:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493C7CE-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Information about the nature of its leases, including:</span></span></div><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">1</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493C911-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A general description of those leases.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">2</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493CA5A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The basis and terms and conditions on which <a href=\"/glossary/v/#variable-lease-payments\" class=\"term\" title=\"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.\"><span>variable lease payments</span></a> are determined.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">3</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493CBB4-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use assets</span></a> and <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liabilities</span></a> and those that are not.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">4</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493CD1F-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The existence and terms and conditions of <a href=\"/glossary/r/#residual-value-guarantee\" class=\"term\" title=\"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.\"><span>residual value guarantees</span></a> provided by the lessee.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">5</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493CE87-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The restrictions or covenants imposed by leases, for example, those relating to dividends or incurring additional financial obligations.</span></span></div></li></ol><span class=\"sfragment\" id=\"sfr_E493CFD1-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A lessee should identify the information relating to <a href=\"/glossary/s/#sublease\" class=\"term\" title=\"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.\"><span>subleases</span></a> included in the disclosures provided in (1) through (5), as applicable.</span></span></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493D113-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 <a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"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.\"><span>underlying asset</span></a>. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493D258-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Information about significant assumptions and judgments made in applying the requirements of this Topic, which may include the following:</span></span></div><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">1</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493D3BE-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The determination of whether a <a href=\"/glossary/c/#contract\" class=\"term\" title=\"An agreement between two or more parties that creates enforceable rights and obligations.\"><span>contract</span></a> contains a lease (as described in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/10/#842-10-15-2\" class=\"xref\">842-10-15-2 through 15-27</a></div>) </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">2</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493D52B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The allocation of the consideration in a contract between lease and nonlease components (as described in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/10/#842-10-15-28\" class=\"xref\">842-10-15-28 through 15-32</a></div>) </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">3</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493D68B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The determination of the <a href=\"/glossary/d/#discount-rate-for-the-lease\" class=\"term\" title=\"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.\"><span>discount rate for the lease</span></a> (as described in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-30-2\" class=\"xref\">842-20-30-2 through 30-4</a></div>).</span></span></div></li></ol></li></ol></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E493D7D2-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493D91B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><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 lease</span></a> cost, segregated between the amortization of the right-of-use assets and interest on the lease liabilities.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493DA73-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><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 lease</span></a> cost determined in accordance with paragraphs <a href=\"/asc/842/20/#842-20-25-6\" class=\"xref\">842-20-25-6(a)</a> and <a href=\"/asc/842/20/#842-20-25-7\" class=\"xref\">842-20-25-7</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493DBC2-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><a href=\"/glossary/s/#short-term-lease\" class=\"term\" title=\"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.\"><span>Short-term lease</span></a> cost, excluding expenses relating to leases with a <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a> of one month or less, determined in accordance with paragraph <a href=\"/asc/842/20/#842-20-25-2\" class=\"xref\">842-20-25-2</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493DD42-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Variable lease cost determined in accordance with paragraphs <a href=\"/asc/842/20/#842-20-25-5\" class=\"xref\">842-20-25-5(b)</a> and <a href=\"/asc/842/20/#842-20-25-6\" class=\"xref\">842-20-25-6(b)</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493DE95-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Sublease income, disclosed on a gross basis, separate from the finance or operating lease expense.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">f</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493DFC5-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Net gain or loss recognized from sale and leaseback transactions in accordance with paragraph <a href=\"/asc/842/40/#842-40-25-4\" class=\"xref\">842-40-25-4</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">g</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493E107-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amounts segregated between those for finance and operating leases for the following items:</span></span></div><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">1</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493E248-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Cash paid for amounts included in the measurement of lease liabilities, segregated between operating and financing cash flows</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">2</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493E366-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">3</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493E4A0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Weighted-average remaining lease term</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">4</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E493E5D1-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Weighted-average discount rate.</span></span></div></li></ol></li></ol></div><div class=\"div pending-text\" id=\"pgroup_E493A4BB-6E92-1014-A13F-6E4B94C84136__GUID-2001ECE9-7DDF-4D5A-B3C6-C308871599F3\"><div class=\"div date-effective\"><span class=\"transition-header\">Transition date:</span><span class=\"p-alphabet\">(P) December 16, 2026; (N) December 16, 2026</span><span class=\"transition-header pipe-separator\">Transition guidance:</span></div><a href=\"/asc/220/40/#220-40-65-1\" class=\"xref\">220-40-65-1</a><span class=\"sfragment\" id=\"GUID-FBB36C5F-69A1-45DD-8E38-7BD6A6A93315\"><span class=\"sfragment-source\">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:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-32EBCC22-CD11-4B89-BE74-A4EAE72853B2\"><span class=\"sfragment-source\"><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 lease</span></a> cost, segregated between the amortization of the right-of-use assets and interest on the lease liabilities.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-421BE122-0B2E-456A-833A-A36A16F8BC43\"><span class=\"sfragment-source\"><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 lease</span></a> cost determined in accordance with paragraphs <a href=\"/asc/842/20/#842-20-25-6\" class=\"xref\">842-20-25-6(a)</a> and <a href=\"/asc/842/20/#842-20-25-7\" class=\"xref\">842-20-25-7</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-4F8CE8F1-DAE1-4A34-BE80-C2C01EF10904\"><span class=\"sfragment-source\"><a href=\"/glossary/s/#short-term-lease\" class=\"term\" title=\"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.\"><span>Short-term lease</span></a> cost, excluding expenses relating to leases with a <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a> of one month or less, determined in accordance with paragraph <a href=\"/asc/842/20/#842-20-25-2\" class=\"xref\">842-20-25-2</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-8EB329EF-6FB4-415B-A279-06B09A2BC3D0\"><span class=\"sfragment-source\">Variable lease cost determined in accordance with paragraphs <a href=\"/asc/842/20/#842-20-25-5\" class=\"xref\">842-20-25-5(b)</a> and <a href=\"/asc/842/20/#842-20-25-6\" class=\"xref\">842-20-25-6(b)</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-BB90F88D-0753-4A18-9F7D-853F7FB533E0\"><span class=\"sfragment-source\">Sublease income, disclosed on a gross basis, separate from the finance or operating lease expense.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">f</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-3026E967-7584-4375-BF40-0717B32F6528\"><span class=\"sfragment-source\">Net gain or loss recognized from sale and leaseback transactions in accordance with paragraph <a href=\"/asc/842/40/#842-40-25-4\" class=\"xref\">842-40-25-4</a>.</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">g</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-5202C7A1-4725-4F2A-9CF7-0DDC0E4194DE\"><span class=\"sfragment-source\">Amounts segregated between those for finance and operating leases for the following items:</span></span></div><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">1</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-F4EDAE89-52F5-4D50-A1CE-56755552675A\"><span class=\"sfragment-source\">Cash paid for amounts included in the measurement of lease liabilities, segregated between operating and financing cash flows</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">2</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-CCB4A5F0-5BD9-4BF9-96EF-10031EE0EA2B\"><span class=\"sfragment-source\">Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">3</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-A64832D0-3B2D-4E32-852C-721317035F97\"><span class=\"sfragment-source\">Weighted-average remaining lease term</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">4</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-920DE65E-5F38-4401-8FFF-99819692661B\"><span class=\"sfragment-source\">Weighted-average discount rate.</span></span></div></li></ol></li></ol><div class=\"p\"><span class=\"sfragment\" id=\"GUID-7302F806-1AC9-4133-B9A9-D36777226EFD\"><span class=\"sfragment-source\">See paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/220/40/#220-40-50-21\" class=\"xref\">220-40-50-21 through 50-25</a></div> for additional disclosure requirements.</span></span></div></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E493E727-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">See paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-11\" class=\"xref\">842-20-55-11 through 55-12</a></div> for implementation guidance on preparing the weighted-average remaining lease term and the weighted-average discount rate disclosures. See Example 6 (paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-52\" class=\"xref\">842-20-55-52 through 55-53</a></div>) for an illustration of the lessee quantitative disclosure requirements in paragraph <a href=\"/asc/842/20/#842-20-50-4\" class=\"xref\">842-20-50-4</a>.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E493E874-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E493E9C0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A lessee shall disclose lease transactions between related parties in accordance with paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/850/10/#850-10-50-1\" class=\"xref\">850-10-50-1 through 50-6</a></div>.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-6BEDCD73-64BD-41C7-992C-59E97CCD0483\"><span class=\"sfragment-source\">When the <a href=\"/glossary/u/#useful-life\" class=\"term\" title=\"The period over which an asset is expected to contribute directly or indirectly to future cash flows.\"><span>useful life</span></a> of leasehold improvements to the common control group determined in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-12A\" class=\"xref\">842-20-35-12A</a> exceeds the related lease term, a lessee shall disclose the following information:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-954B65F0-7464-459E-A829-ADEEBCF76827\"><span class=\"sfragment-source\">The unamortized balance of the leasehold improvements at the balance sheet date</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-F1A303EB-9BCD-4032-9CFB-CFA8D11DE83E\"><span class=\"sfragment-source\">The remaining useful life of the leasehold improvements to the common control group</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"GUID-2819EEA9-E467-4CB8-AB83-0DDB32656B9C\"><span class=\"sfragment-source\">The remaining lease term. </span></span></div></li></ol></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E493EBD6-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A lessee that accounts for short-term leases in accordance with paragraph <a href=\"/asc/842/20/#842-20-25-2\" class=\"xref\">842-20-25-2</a> 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. </span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E493ED28-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A lessee that elects the practical expedient on not separating lease components from nonlease components in paragraph <a href=\"/asc/842/10/#842-10-15-37\" class=\"xref\">842-10-15-37</a> shall disclose its accounting policy election and which class or classes of underlying assets it has elected to apply the practical expedient.</span></span></div></div>","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":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E493EE63-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A lessee that makes the accounting policy election in paragraph <a href=\"/asc/842/20/#842-20-30-3\" class=\"xref\">842-20-30-3</a> 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.</span></span></div></div>","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"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"842-20-55-1","para":"55-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4774D-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A <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>lessee</span></a> should recognize costs from <a href=\"/glossary/v/#variable-lease-payments\" class=\"term\" title=\"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.\"><span>variable lease payments</span></a> (in annual periods as well as in interim periods) before the achievement of the specified target that triggers the variable lease payments, provided the achievement of that target is considered <a href=\"/glossary/p/#probable\" class=\"term\" title=\"The future event or events are likely to occur.\"><span>probable</span></a>.</span></span> </div> </div>","snippet":"A lessee should recognize costs from variable lease payments (in annual periods as well as in interim periods) before the achievement of the specified target that triggers the variable lease payments, provided the achiev…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78c6e31c9a6f34586f66c0c7225c794eadaf10d272f1f94f3e9e6843dd9f2051","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-2","para":"55-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B47A0C-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Variable lease costs recognized in accordance with paragraph <a href=\"/asc/842/20/#842-20-55-1\" class=\"xref\">842-20-55-1</a> should be reversed at such time that it is probable that the specified target will not be met.</span></span> </div> </div>","snippet":"Variable lease costs recognized in accordance with paragraph 842-20-55-1 should be reversed at such time that it is probable that the specified target will not be met.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58563d988ba97456c3be69dc729b868700188a28b784e056e001ba8ea41f5de2","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-3","para":"55-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B47C2B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic considers the right to control the use of the <a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"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.\"><span>underlying asset</span></a> as the equivalent of physical use. If the <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>lessee</span></a> controls the use of the underlying asset, recognition of <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>lease</span></a> cost in accordance with paragraph <a href=\"/asc/842/20/#842-20-25-6\" class=\"xref\">842-20-25-6(a)</a> or amortization of the <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> in accordance with paragraph <a href=\"/asc/842/20/#842-20-35-7\" class=\"xref\">842-20-35-7</a> should not be affected by the extent to which the lessee uses the underlying asset.</span></span> </div> </div>","snippet":"This Subtopic considers the right to control the use of the underlying asset as the equivalent of physical use. If the lessee controls the use of the underlying asset, recognition of lease cost in accordance with paragra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0413995d13e69f2b40540d385398b88f67f0be047e4b55082532098db2ffe62e","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-4","para":"55-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B47E4C-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Under certain <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> (for example, certain equipment leases), a <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>lessee</span></a> is legally or contractually responsible for repair and maintenance of the <a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"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.\"><span>underlying asset</span></a> throughout the <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a>. Additionally, certain lease agreements include provisions requiring the lessee to make deposits to the <a href=\"/glossary/l/#lessor\" class=\"term\" title=\"An entity that enters into a contract to provide the right to use an underlying asset for a period of time in exchange for consideration.\"><span>lessor</span></a> to financially protect the lessor in the event the lessee does not properly maintain the underlying asset. Lease agreements often refer to these deposits as maintenance reserves or supplemental rent. However, the lessor is required to reimburse the deposits to the lessee on the completion of maintenance activities that the lessee is contractually required to perform under the lease agreement.</span></span> </div> </div>","snippet":"Under certain leases (for example, certain equipment leases), a lessee is legally or contractually responsible for repair and maintenance of the underlying asset throughout the lease term. Additionally, certain lease agr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b6b54eaf923d30b59017b65e5167fa5435a485e596a1aaad2675744704b7baa0","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-5","para":"55-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4808C-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Under a typical arrangement, maintenance deposits are calculated on the basis of a performance measure, such as hours of use of the underlying asset, and are contractually required under the terms of the lease agreement to be used to reimburse the lessee for required maintenance of the underlying asset on the completion of that maintenance. The lessor is contractually required to reimburse the lessee for the maintenance costs paid by the lessee, to the extent of the amounts on deposit.</span></span> </div> </div>","snippet":"Under a typical arrangement, maintenance deposits are calculated on the basis of a performance measure, such as hours of use of the underlying asset, and are contractually required under the terms of the lease agreement …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1fcde55f6be21e824428fc444c0c7ea54af622fbd2987edac10786da898a1a92","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-6","para":"55-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B48280-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In some cases, the total cost of cumulative maintenance events over the term of the lease is less than the cumulative deposits, which results in excess amounts on deposit at the expiration of the lease. In those cases, some lease agreements provide that the lessor is entitled to retain such excess amounts, whereas other agreements specifically provide that, at the expiration of the lease agreement, such excess amounts are returned to the lessee (refundable maintenance deposit).</span></span> </div> </div>","snippet":"In some cases, the total cost of cumulative maintenance events over the term of the lease is less than the cumulative deposits, which results in excess amounts on deposit at the expiration of the lease. In those cases, s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b362ddc8026253e1daf409c9ea38c0449ae5c5e5ccfa84f5d6d0bb9912fc698a","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-7","para":"55-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B48478-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-8\" class=\"xref\">842-20-55-8 through 55-9</a></div> does not apply to payments to a lessor that are not substantively and contractually related to maintenance of the leased asset. If at the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a> a lessee determines that it is less than <a href=\"/glossary/p/#probable\" class=\"term\" title=\"The future event or events are likely to occur.\"><span>probable</span></a> that the total amount of payments will be returned to the lessee as a reimbursement for maintenance activities, the lessee should consider that when determining the portion of each payment that is not addressed by the guidance in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-8\" class=\"xref\">842-20-55-8 through 55-9</a></div>.</span></span> </div> </div>","snippet":"The guidance in paragraphs 842-20-55-8 through 55-9 does not apply to payments to a lessor that are not substantively and contractually related to maintenance of the leased asset. If at the commencement date a lessee det…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3f8c301c6c56582acff04772ba78758e93a86e43453facdaebbfa69b798bf84e","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-8","para":"55-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B485FA-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Maintenance deposits paid by a lessee under an arrangement accounted for as a lease that are refunded only if the lessee performs specified maintenance activities should be accounted for as a deposit asset.</span></span> </div> </div>","snippet":"Maintenance deposits paid by a lessee under an arrangement accounted for as a lease that are refunded only if the lessee performs specified maintenance activities should be accounted for as a deposit asset.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d4d6c9659b43886f39b9f37dd06e9261c5a63ab23a0f7644701f023933012c6","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-9","para":"55-9","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B48732-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A lessee should evaluate whether it is probable that an amount on deposit recognized under paragraph <a href=\"/asc/842/20/#842-20-55-8\" class=\"xref\">842-20-55-8</a> will be returned to reimburse the costs of the maintenance activities incurred by the lessee. When an amount on deposit is less than probable of being returned, it should be recognized in the same manner as variable lease expense. When the underlying maintenance is performed, the maintenance costs should be expensed or capitalized in accordance with the lessee's maintenance accounting policy.</span></span> </div> </div>","snippet":"A lessee should evaluate whether it is probable that an amount on deposit recognized under paragraph 842-20-55-8 will be returned to reimburse the costs of the maintenance activities incurred by the lessee. When an amoun…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78dbe2b5ae8c456275ba351c5274e7ef01bf6f3398d37d03b29eba7d0f95d941","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-10","para":"55-10","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4887D-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/r/#right-of-use-asset\" class=\"term\" title=\"An asset that represents a lessee's right to use an underlying asset for the lease term.\"><span>right-of-use asset</span></a> is a nonmonetary asset while the <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a> is a <a href=\"/glossary/m/#monetary-liability\" class=\"term\" title=\"An obligation to pay a sum of money the amount of which is fixed or determinable without reference to future prices of specific goods and services.\"><span>monetary liability</span></a>. Therefore, in accordance with Subtopic <a altsource=\"GUID-0FF1F46F-04E4-4EEE-A94D-0A2078B4B4E9.ditamap\" class=\"ditamap\">830-10</a> on foreign currency matters, when accounting for a <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>lease</span></a> that is denominated in a foreign currency, if remeasurement into the <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>lessee's</span></a> functional currency is required, the lease liability is remeasured using the current exchange rate, while the right-of-use asset is remeasured using the exchange rate as of the <a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>commencement date</span></a>.</span></span> </div> </div>","snippet":"The right-of-use asset is a nonmonetary asset while the lease liability is a monetary liability. Therefore, in accordance with Subtopic 830-10 on foreign currency matters, when accounting for a lease that is denominated …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3a82395f12b2c28d52d2774f8238ab92f935be566875b1da1138e009d31aac2d","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-11","para":"55-11","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B489F0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <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>lessee</span></a> should calculate the weighted-average remaining <a href=\"/glossary/l/#lease-term\" class=\"term\" title=\"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.\"><span>lease term</span></a> on the basis of the remaining lease term and the <a href=\"/glossary/l/#lease-liability\" class=\"term\" title=\"A lessee's obligation to make the lease payments arising from a lease, measured on a discounted basis.\"><span>lease liability</span></a> balance for each <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>lease</span></a> as of the reporting date.</span></span> </div> </div>","snippet":"The lessee should calculate the weighted-average remaining lease term on the basis of the remaining lease term and the lease liability balance for each lease as of the reporting date.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:98361196994c1962ec2ed1f57a1ba3f93a5209a2e15267e1f7393a3d879198d1","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-12","para":"55-12","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B48B15-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The lessee should calculate the weighted-average discount rate on the basis of both of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B48C2A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/d/#discount-rate-for-the-lease\" class=\"term\" title=\"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.\"><span>discount rate for the lease</span></a> that was used to calculate the lease liability balance for each lease as of the reporting date</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B48D59-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The remaining balance of the <a href=\"/glossary/l/#lease-payments\" class=\"term\" title=\"See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.\"><span>lease payments</span></a> for each lease as of the reporting date.</span></span> </div> </li> </ol> </div> </div>","snippet":"The lessee should calculate the weighted-average discount rate on the basis of both of the following:\n(a) The discount rate for the lease that was used to calculate the lease liability balance for each lease as of the re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fd72513a02e29bcbd48f24844a9e0baab7ef90acad639fd4de1f46d8fb0dcf5","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d8e8cd0ea226416854b67970c5109f7e1723e5b276001a730665621a79d60711","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"842-20-55-13","para":"55-13","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B48F36-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Example 1 illustrates the assessment of whether a lease is a short-term lease.</span></span> </div> </div>","snippet":"Example 1 illustrates the assessment of whether a lease is a short-term lease.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db697b221a8d2f29264a3ef8f86e93b248e25df8f79987e7f33bcf49ec4b4a52","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-14","para":"55-14","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B491D7-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee has made an accounting policy election not to recognize right-of-use assets and lease liabilities that arise from short-term leases for any class of underlying asset.</span></span> </div> </div>","snippet":"Lessee has made an accounting policy election not to recognize right-of-use assets and lease liabilities that arise from short-term leases for any class of underlying asset.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:245b9cc29cb2208f2410bf7080f37ed32abb6ad2192fea2822b37357a0f766d8","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-15","para":"55-15","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B493DE-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee enters into a 12-month lease of a vehicle, with an option to extend for another 12 months. Lessee has considered all relevant factors and determined that it is not reasonably certain to exercise the option to extend. Because at lease commencement Lessee is not reasonably certain to exercise the option to extend, the lease term is 12 months.</span></span> </div> </div>","snippet":"Lessee enters into a 12-month lease of a vehicle, with an option to extend for another 12 months. Lessee has considered all relevant factors and determined that it is not reasonably certain to exercise the option to exte…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ebd5261e9607d86251982dda512ceb8498870c2b0c32c39d88798d5b145facc","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-16","para":"55-16","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B49CF4-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The lease meets the definition of a short-term lease because the lease term is 12 months or less. Consequently, consistent with Lessee's accounting policy election, Lessee does not recognize the right-of-use asset and the lease liability arising from this lease.</span></span> </div> </div>","snippet":"The lease meets the definition of a short-term lease because the lease term is 12 months or less. Consequently, consistent with Lessee's accounting policy election, Lessee does not recognize the right-of-use asset and th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7010dbf0cb269825901de0401b4f166baf1dc40c7269bb4d58e7fb320ef3831b","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-17","para":"55-17","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4A0EC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Example 2 illustrates the determination of the discount rate for the lease.</span></span> </div> </div>","snippet":"Example 2 illustrates the determination of the discount rate for the lease.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64f4bec4be9c51363acfbfed90ce421038611f8103627d4b829b8d8b2d1dc34c","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-18","para":"55-18","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4A2AC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee, a public entity, is the parent of several consolidated subsidiaries. During the current period, 2 subsidiaries entered into a total of 400 individual leases of large computer servers, each with terms ranging between 4 and 5 years and annual payments ranging between $60,000 and $100,000, depending on the hardware capacity of the servers. In aggregate, total lease payments for these leases amount to $30 million.</span></span> </div> </div>","snippet":"Lessee, a public entity, is the parent of several consolidated subsidiaries. During the current period, 2 subsidiaries entered into a total of 400 individual leases of large computer servers, each with terms ranging betw…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b5b7b4bcb4fa195aaef55bfa5aeb9f1acbe47c4a6eb2adb8798afde31b5ed588","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-19","para":"55-19","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4A3F3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The individual lease contracts do not provide information about the rate implicit in the lease. Lessee is BBB credit rated and actively raises debt in the corporate bond market. Both subsidiaries are unrated and do not actively engage in treasury operations in their respective markets. On the basis of its credit rating and the collateral represented by the leased servers, Lessee's incremental borrowing rate on $60,000 through $100,000 (the range of lease payments on each of the 400 leases) would be approximately 4 percent. Lessee notes that 5-year zero-coupon U.S. Treasury instruments are currently yielding 1.7 percent (a risk-free rate). Because Lessee conducts its treasury operations centrally (that is, at the consolidated group level), it is reasonably assumed that consideration of the group credit standing factored into how each lease was priced.</span></span> </div> </div>","snippet":"The individual lease contracts do not provide information about the rate implicit in the lease. Lessee is BBB credit rated and actively raises debt in the corporate bond market. Both subsidiaries are unrated and do not a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0de1f497dcc054eba2e98fc343499a9d4e7609aa6dd60fda1c6f67e4749a63a","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-20","para":"55-20","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4A520-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee may determine the discount rate for the lease for the 400 individual leases entered into on different dates throughout the current period by using a portfolio approach. That is, Lessee can apply a single discount rate to the portfolio of new leases. This is because during the period, the new leases are all of similar terms (four to five years), and Lessee's credit rating and the interest rate environment are stable. Because the pricing of the lease is influenced by the credit standing and profile of Lessee rather than the subsidiaries (that is, because Lessee conducts treasury operations for the consolidated group), Lessee concludes that its incremental borrowing rate of 4 percent is an appropriate discount rate for each of the 400 leases entered into by Lessee's 2 subsidiaries during the period. Because Lessee is a public entity, it is not permitted to use a risk-free discount rate.</span></span> </div> </div>","snippet":"Lessee may determine the discount rate for the lease for the 400 individual leases entered into on different dates throughout the current period by using a portfolio approach. That is, Lessee can apply a single discount …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9a0f192e30857e0c42d72449d69cff1da86950024b1d7d8b0c031aa840eaef5d","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-21","para":"55-21","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4A62A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Example 3 illustrates how a lessee would initially and subsequently measure right-of-use assets and lease liabilities and how a lessee would account for a change in the lease term.</span></span> </div> </div>","snippet":"Example 3 illustrates how a lessee would initially and subsequently measure right-of-use assets and lease liabilities and how a lessee would account for a change in the lease term.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f01b004da29ae7dcdad1df6673483f453f5e46a5a50bf79411db1a5335b9e912","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-22","para":"55-22","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4A70E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee enters into a 10-year lease of an asset, with an option to extend for an additional 5 years. Lease payments are $50,000 per year during the initial term and $55,000 per year during the optional period, all payable at the beginning of each year. Lessee incurs initial direct costs of $15,000.</span></span> </div> </div>","snippet":"Lessee enters into a 10-year lease of an asset, with an option to extend for an additional 5 years. Lease payments are $50,000 per year during the initial term and $55,000 per year during the optional period, all payable…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ef158d135ec0eb9fa632e463eaf34656e4727bbcae3092f68c66aea304ad36e","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-23","para":"55-23","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4A7EB-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the commencement date, Lessee concludes that it is not reasonably certain to exercise the option to extend the lease and, therefore, determines the lease term to be 10 years.</span></span> </div> </div>","snippet":"At the commencement date, Lessee concludes that it is not reasonably certain to exercise the option to extend the lease and, therefore, determines the lease term to be 10 years.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:baddf7536cbfd8828298e57eac19dd5ae04e0a4fe64876e9006dddb59c1dc3eb","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-24","para":"55-24","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4A8F9-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The rate implicit in the lease is not readily determinable. Lessee's incremental borrowing rate is 5.87 percent, which reflects the fixed rate at which Lessee could borrow a similar amount in the same currency, for the same term, and with similar collateral as in the lease at the commencement date.</span></span> </div> </div>","snippet":"The rate implicit in the lease is not readily determinable. Lessee's incremental borrowing rate is 5.87 percent, which reflects the fixed rate at which Lessee could borrow a similar amount in the same currency, for the s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c91afc31a6a55a850e25507ecd20a43d8aa121ae36252e07e702986b69e89ec","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-25","para":"55-25","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4A9F0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the commencement date, Lessee makes the lease payment for the first year, incurs initial direct costs, and measures the lease liability at the present value of the remaining 9 payments of $50,000, discounted at the rate of 5.87 percent, which is $342,017. Lessee also measures a right-of-use asset of $407,017 (the initial measurement of the lease liability plus the initial direct costs and the lease payment for the first year).</span></span> </div> </div>","snippet":"At the commencement date, Lessee makes the lease payment for the first year, incurs initial direct costs, and measures the lease liability at the present value of the remaining 9 payments of $50,000, discounted at the ra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a37c180c660d059fd83f1119498e1d53201e868303c6744f4e5b56c112563bab","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-26","para":"55-26","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4AAF4-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">During the first year of the lease, Lessee recognizes lease expense depending on how the lease is classified. Paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/20/#842-20-55-27\" class=\"xref\">842-20-55-27 through 55-30</a></div> illustrate the lease expense depending on whether the lease is classified as a finance lease or as an operating lease.</span></span> </div> </div>","snippet":"During the first year of the lease, Lessee recognizes lease expense depending on how the lease is classified. Paragraphs 842-20-55-27 through 55-30 illustrate the lease expense depending on whether the lease is classifie…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a62515f86b0b688290717e771e4859a830ccbd73f643fd170cea54ff4e02fdc2","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-27","para":"55-27","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4AC02-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee depreciates its owned assets on a straight-line basis. Therefore, the right-of-use asset would be amortized on a straight-line basis over the 10-year lease term. The lease liability is increased to reflect the Year 1 interest on the lease liability in accordance with the interest method. As such, in Year 1 of the lease, Lessee recognizes the amortization expense of $40,702 ($407,017 ÷ 10) and the interest expense of $20,076 (5.87% × $342,017).</span></span> </div> </div>","snippet":"Lessee depreciates its owned assets on a straight-line basis. Therefore, the right-of-use asset would be amortized on a straight-line basis over the 10-year lease term. The lease liability is increased to reflect the Yea…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:754569f99083f255197fb75c637c2835322388281965b351d574a9dca3079d74","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-28","para":"55-28","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4AD04-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the end of the first year of the lease, the carrying amount of Lessee's lease liability is $362,093 ($342,017 + $20,076), and the carrying amount of the right-of-use asset is $366,315 ($407,017 - $40,702).</span></span> </div> </div>","snippet":"At the end of the first year of the lease, the carrying amount of Lessee's lease liability is $362,093 ($342,017 + $20,076), and the carrying amount of the right-of-use asset is $366,315 ($407,017 - $40,702).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:151b4b5ac1a4561118fa73349449b547ba05d3c1b36fa6572c75d14e95f6d35c","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-29","para":"55-29","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4ADF7-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee determines the cost of the lease to be $515,000 (sum of the lease payments for the lease term and initial direct costs incurred by Lessee). The annual lease expense to be recognized is therefore $51,500 ($515,000 ÷ 10 years).</span></span> </div> </div>","snippet":"Lessee determines the cost of the lease to be $515,000 (sum of the lease payments for the lease term and initial direct costs incurred by Lessee). The annual lease expense to be recognized is therefore $51,500 ($515,000 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f99497a5044a984d388278602df3bc1b4ec64b1a2e84529f8f25dd113fb3938f","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-30","para":"55-30","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4AEE5-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the end of the first year of the lease, the carrying amount of Lessee's lease liability is $362,093 ($342,017 + $20,076), and the carrying amount of the right-of-use asset is $375,593 (the carrying amount of the lease liability plus the remaining initial direct costs, which equal $13,500).</span></span> </div> </div>","snippet":"At the end of the first year of the lease, the carrying amount of Lessee's lease liability is $362,093 ($342,017 + $20,076), and the carrying amount of the right-of-use asset is $375,593 (the carrying amount of the lease…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:824138889924a8748c53fa5f97f68a3d9e8d18af82f53ce482ba22f4da65aebf","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-31","para":"55-31","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4B010-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the end of Year 6 of the lease, Lessee makes significant leasehold improvements. Those improvements are expected to have significant economic value for Lessee at the end of the original lease term of 10 years. The improvements result in the underlying asset having greater utility to Lessee than alternative assets that could be leased for a similar amount and that are expected to have significant economic life beyond the original lease term. Consequently, construction of the leasehold improvements is deemed a significant event or significant change in circumstances that directly affects whether Lessee is reasonably certain to exercise the option to extend the lease and triggers a reassessment of the lease term. Upon reassessing the lease term, at the end of Year 6, Lessee concludes that it is reasonably certain to exercise the option to extend the lease for five years. Taking into consideration the extended remaining lease term, Lessee's incremental borrowing rate at the end of Year 6 is 7.83 percent. As a result of Lessee's remeasuring the remaining lease term to nine years, Lessee also would remeasure any variable lease payments that depend on an index or a rate; however, in this Example, there are no variable lease payments that depend on an index or a rate. In accordance with paragraph <a href=\"/asc/842/10/#842-10-25-1\" class=\"xref\">842-10-25-1</a>, Lessee reassesses the lease classification as a result of the change in the lease term. Assume for purposes of this Example that the reassessment does not change the classification of the lease from that determined at the commencement date.</span></span> </div> </div>","snippet":"At the end of Year 6 of the lease, Lessee makes significant leasehold improvements. Those improvements are expected to have significant economic value for Lessee at the end of the original lease term of 10 years. The imp…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0228ece517a36dd6321a10a04689dae9c8941da9e596142c82c71d48a575dcd8","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-32","para":"55-32","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4B0F0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the end of Year 6, before accounting for the change in the lease term, the lease liability is $183,973 (present value of 4 remaining payments of $50,000, discounted at the rate of 5.87 percent). Lessee's right-of-use asset is $162,807 if the lease is classified as a finance lease or $189,973 if the lease is classified as an operating lease (the balance of the remeasured lease liability at the end of Year 6 plus the remaining initial direct costs of $6,000).</span></span> </div> </div>","snippet":"At the end of Year 6, before accounting for the change in the lease term, the lease liability is $183,973 (present value of 4 remaining payments of $50,000, discounted at the rate of 5.87 percent). Lessee's right-of-use …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7d29bd6997a5c6d095baf1eb9e6bb8dcf0bead97ee06d0853ad72312584ae95e","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-33","para":"55-33","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4B1E2-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee remeasures the lease liability, which is now equal to the present value of 4 payments of $50,000 followed by 5 payments of $55,000, all discounted at the rate of 7.83 percent, which is $355,189. Lessee increases the lease liability by $171,216, representing the difference between the remeasured liability and its current carrying amount ($355,189 - $183,973). The corresponding adjustment is made to the right-of-use asset to reflect the cost of the additional rights.</span></span> </div> </div>","snippet":"Lessee remeasures the lease liability, which is now equal to the present value of 4 payments of $50,000 followed by 5 payments of $55,000, all discounted at the rate of 7.83 percent, which is $355,189. Lessee increases t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:43c86eefaebd446b627f07b826455945da9d7ba524e432ce66f6fa9660b68d77","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-34","para":"55-34","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4B2FF-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Following the adjustment, the carrying amount of Lessee's right-of-use asset is $334,023 if the lease is a finance lease (that is, $162,807 + $171,216) or $361,189 if the lease is an operating lease (that is, $189,973 + $171,216).</span></span> </div> </div>","snippet":"Following the adjustment, the carrying amount of Lessee's right-of-use asset is $334,023 if the lease is a finance lease (that is, $162,807 + $171,216) or $361,189 if the lease is an operating lease (that is, $189,973 + …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d139555f390db3a653999f7422018e3d93e62befa87a49f6fd2d8cff627adbd","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-35","para":"55-35","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4B41A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee then makes the $50,000 lease payment for Year 7, reducing the lease liability to $305,189 ($355,189 - $50,000), regardless of how the lease is classified.</span></span> </div> </div>","snippet":"Lessee then makes the $50,000 lease payment for Year 7, reducing the lease liability to $305,189 ($355,189 - $50,000), regardless of how the lease is classified.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c9cbd918f4ca5b8a94c01dd559f86dafd76287ec258058ae0778f20f5cc91aa","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-36","para":"55-36","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4B563-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee recognizes lease expense in Year 7 as follows, depending on how the lease had been classified at the commencement date.</span></span> </div> </div>","snippet":"Lessee recognizes lease expense in Year 7 as follows, depending on how the lease had been classified at the commencement date.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:71d71b980ec4b4b8fa209aa00895e881f9d7e95097130ed924c5f94e8d38e552","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-37","para":"55-37","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4B689-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee depreciates its owned assets on a straight-line basis. Therefore, the right-of-use asset will be amortized on a straight-line basis over the lease term. The lease liability will be reduced in accordance with the interest method. As such, in Year 7 (the first year following the remeasurement), Lessee recognizes amortization expense of $37,114 ($334,023 ÷ 9) and interest expense of $23,896 (7.83% × $305,189).</span></span> </div> </div>","snippet":"Lessee depreciates its owned assets on a straight-line basis. Therefore, the right-of-use asset will be amortized on a straight-line basis over the lease term. The lease liability will be reduced in accordance with the i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7f7934449e8d5358d18c7249656237b0c0115a7be22f80dc139baae2daac0540","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-38","para":"55-38","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4B7A5-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee determines the remaining cost of the lease as the sum of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B4B94F-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The total lease payments, as adjusted for the remeasurement, which is the sum of $500,000 (10 payments of $50,000 during the initial lease term) and $275,000 (5 payments of $55,000 during the term of the lease extension); plus</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B4BA68-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The total initial direct costs attributable to the lease of $15,000; minus</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">c</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B4BB7E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The periodic lease cost recognized in prior periods of $309,000.</span></span> </div> </li> </ol> </div> </div>","snippet":"Lessee determines the remaining cost of the lease as the sum of the following:\n(a) The total lease payments, as adjusted for the remeasurement, which is the sum of $500,000 (10 payments of $50,000 during the initial leas…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7929969aebff4b553b596f463c56e6158a2afbd10f76c58ef7ea4a330cead93a","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-39","para":"55-39","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4BC95-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The amount of the remaining cost of the lease is therefore $481,000 ($775,000 + $15,000 - $309,000). Consequently, Lessee determines that the annual expense to be recognized throughout the remainder of the lease term is $53,444 ($481,000 ÷ the remaining lease term of 9 years).</span></span> </div> </div>","snippet":"The amount of the remaining cost of the lease is therefore $481,000 ($775,000 + $15,000 - $309,000). Consequently, Lessee determines that the annual expense to be recognized throughout the remainder of the lease term is …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ed5c8d0c351a6bf16a6a9ed863dd904665ccd254949eb4e94a48661218bddc7","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-40","para":"55-40","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4BDBD-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Example 4 illustrates how a lessee would recognize lease cost in an operating lease and initially and subsequently measure right-of-use assets and lease liabilities for that lease.</span></span> </div> </div>","snippet":"Example 4 illustrates how a lessee would recognize lease cost in an operating lease and initially and subsequently measure right-of-use assets and lease liabilities for that lease.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d627d9fda06c9ae7f7eea4578d799a1de720297152c048d5d40ab7be8ed9f9cb","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-41","para":"55-41","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4BED7-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee enters into a 10-year lease for 5,000 square feet of office space. The annual lease payment is $10,000, paid in arrears, and increases 5 percent each year during the lease term. Lessee's incremental borrowing rate at lease commencement is 6 percent. Lessee classifies the lease as an operating lease in accordance with paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/842/10/#842-10-25-2\" class=\"xref\">842-10-25-2 through 25-3</a></div>. Lessee incurs initial direct costs of $5,000.</span></span> </div> </div>","snippet":"Lessee enters into a 10-year lease for 5,000 square feet of office space. The annual lease payment is $10,000, paid in arrears, and increases 5 percent each year during the lease term. Lessee's incremental borrowing rate…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7beffeda87b30a253e77fa9959416fbf993b0ef509115dbfa4942670ef215f67","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-42","para":"55-42","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4BFF8-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the commencement date, Lessee receives a $10,000 cash payment from Lessor that Lessee accounts for as a lease incentive. Lessee measures the lease liability at the present value of the 10 remaining lease payments ($10,000 in Year 1, increasing by 5 percent each year thereafter), discounted at the rate of 6 percent, which is $90,434. Lessee also measures a right-of-use asset of $85,434 (the initial measurement of the lease liability + the initial direct costs of $5,000 - the lease incentive of $10,000).</span></span> </div> </div>","snippet":"At the commencement date, Lessee receives a $10,000 cash payment from Lessor that Lessee accounts for as a lease incentive. Lessee measures the lease liability at the present value of the 10 remaining lease payments ($10…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f556ae33c8570ca69eeb7624e3590902c5083f926d6ee721594c90521304901d","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-43","para":"55-43","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4C1B2-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">During the first year of the lease, Lessee determines the remaining cost of the lease as the sum of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B4C2D3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The total lease payments of $115,779 (the sum of the 10 escalating payments to Lessor during the lease term of $125,779 − the lease incentive paid to Lessee at the commencement date of $10,000) </span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B4C3FC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The total initial direct costs attributable to the lease of $5,000.</span></span> </div> </li> </ol> <span class=\"sfragment\" id=\"sfr_E4B4C53C-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The amount of the remaining lease cost is therefore $120,779 ($115,779 + $5,000). Consequently, Lessee determines that the single lease cost to be recognized every year throughout the lease term is $12,078 ($120,779 ÷ 10 years). This assumes that there are no remeasurements of the lease liability or modifications to the lease throughout the lease term.</span></span> </div> </div>","snippet":"During the first year of the lease, Lessee determines the remaining cost of the lease as the sum of the following:\n(a) The total lease payments of $115,779 (the sum of the 10 escalating payments to Lessor during the leas…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:603d2927139958615a083b4d0c23f8c47d02a2e3ed9d3362d1fc525ab9e740a7","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-44","para":"55-44","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4C688-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the end of Year 1, the carrying amount of the lease liability is $85,860 (9 remaining lease payments, discounted at the rate of 6 percent), and the carrying amount of the right-of-use asset is the amount of the liability, adjusted for the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B4C7CA-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Accrued lease payments of $2,578 (the amount of payments to Lessor to be recognized as part of the single lease cost each year during the lease of $12,578 [total payments to Lessor of $125,779 ÷ 10 years] − the first year's lease payment of $10,000)</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B4C8E8-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Unamortized initial direct costs of $4,500 (gross initial direct costs of $5,000 - amounts recognized previously as part of the single lease cost of $500 [total initial direct costs of $5,000 ÷ 10 years])</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">c</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B4CA18-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The remaining balance of the lease incentive of $9,000 (gross lease incentive of $10,000 - amounts recognized previously as part of the single lease cost of $1,000 [total lease incentives of $10,000 ÷ 10 years]).</span></span> </div> </li> </ol> <span class=\"sfragment\" id=\"sfr_E4B4CB3F-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Therefore, at the end of Year 1, Lessee measures the right-of-use asset at the amount of $78,782 ($85,860 - $2,578 + $4,500 - $9,000).</span></span> </div> </div>","snippet":"At the end of Year 1, the carrying amount of the lease liability is $85,860 (9 remaining lease payments, discounted at the rate of 6 percent), and the carrying amount of the right-of-use asset is the amount of the liabil…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c69ad7ecde579a4c3e2651c685aac35ef1f5e28e8d63171b1c556561e1ee2d1a","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-45","para":"55-45","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4CC79-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the beginning of Year 2, Lessee determines the remaining cost of the lease to be $108,701 (the total lease payments of $115,779 + the total initial direct costs of $5,000 - the single lease cost recognized in Year 1 of $12,078). The single lease cost to be recognized in Year 2 is still $12,078 ($108,701 ÷ 9 years). For the purposes of the Example, only the first two years' determination of the single lease cost are shown. However, the single lease cost will be determined in the same way as in Years 1 and 2 for the remainder of the lease and, in this Example, will continue to equal $12,078 every period for the remainder of the lease term assuming that there are no remeasurements of the lease liability or modifications to the lease.</span></span> </div> </div>","snippet":"At the beginning of Year 2, Lessee determines the remaining cost of the lease to be $108,701 (the total lease payments of $115,779 + the total initial direct costs of $5,000 - the single lease cost recognized in Year 1 o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75f3bd7d6353ac1633245290821d010b0c20a38aa35045cec0678d772dd61557","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-46","para":"55-46","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4CDA5-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the end of Year 2, the carrying amount of the lease liability is $80,511, and the carrying amount of the right-of-use asset is $71,855 (the carrying amount of the lease liability of $80,511 - the accrued lease payments of $4,656 + the unamortized initial direct costs of $4,000 - the remaining balance of the lease incentive received of $8,000). For the purposes of the Example, the subsequent measurement of the lease liability and the subsequent measurement of the right-of-use asset are shown only for the first two years. However, Lessee will continue to measure the lease liability and the right-of-use asset for this lease in the same manner throughout the remainder of the lease term.</span></span> </div> </div>","snippet":"At the end of Year 2, the carrying amount of the lease liability is $80,511, and the carrying amount of the right-of-use asset is $71,855 (the carrying amount of the lease liability of $80,511 - the accrued lease payment…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:379dee8dc917ac4563160377d009b37bb952cf8e88184c3fd648de43cb59e1f0","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-47","para":"55-47","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4CED1-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Example 5 illustrates impairment of a right-of-use asset.</span></span> </div> </div>","snippet":"Example 5 illustrates impairment of a right-of-use asset.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4dbf63c80e16706790fef63ab9da27c235cd45f84bff30a01ebfb4a6fc17674b","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-48","para":"55-48","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4D004-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Lessee enters into a 10-year lease of a nonspecialized asset. Lease payments are $10,000 per year, payable in arrears. The lease does not transfer ownership of the underlying asset or grant Lessee an option to purchase the underlying asset. At lease commencement, the remaining economic life of the underlying asset is 50 years, and the fair value of the underlying asset is $600,000. Lessee does not incur any initial direct costs as a result of the lease. Lessee's incremental borrowing rate is 7 percent, which reflects the fixed rate at which Lessee could borrow the amount of the lease payments in the same currency, for the same term, and with similar collateral as in the lease at commencement. The lease is classified as an operating lease.</span></span> </div> </div>","snippet":"Lessee enters into a 10-year lease of a nonspecialized asset. Lease payments are $10,000 per year, payable in arrears. The lease does not transfer ownership of the underlying asset or grant Lessee an option to purchase t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0cacceb5d3a8d597bbf4d0d4a7a69d4cecc199b77101dd6bff252b7400846a81","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-49","para":"55-49","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4D13A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the commencement date, Lessee recognizes the lease liability of $70,236 (the present value of the 10 lease payments of $10,000, discounted at the rate of 7 percent). Lessee also recognizes a right-of-use asset of $70,236 (the initial measurement of the lease liability). Lessee determines the cost of the lease to be $100,000 (the total lease payments for the lease term). The annual lease expense to be recognized is therefore $10,000 ($100,000 ÷ 10 years).</span></span> </div> </div>","snippet":"At the commencement date, Lessee recognizes the lease liability of $70,236 (the present value of the 10 lease payments of $10,000, discounted at the rate of 7 percent). Lessee also recognizes a right-of-use asset of $70,…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39cced1fda0f82f050726abdc6440ba1cb2ad75ba7211ea912a49b57ad534517","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-50","para":"55-50","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4D27A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the end of Year 3, when the carrying amount of the lease liability and the right-of-use asset are both $53,893, Lessee determines that the right-of-use asset is impaired in accordance with Section <a altsource=\"GUID-DB49B5A7-DC7E-40FE-86DC-A5103AAF103A.ditamap\" class=\"ditamap\">360-10-35</a> and recognizes an impairment loss of $35,000. The right-of-use asset is part of an asset group that Lessee tested for recoverability because of a significant adverse change in the business climate that affects Lessee's ability to derive benefit from the assets within the asset group. The portion of the total impairment loss for the asset group allocated to the right-of-use asset in accordance with paragraph <a href=\"/asc/360/10/#360-10-35-28\" class=\"xref\">360-10-35-28</a> is $35,000. After the impairment charge, the carrying amount of the right-of-use asset at the end of Year 3 is $18,893 ($53,893 - $35,000). Because of the impairment, the total expense recognized in Year 3 is $45,000 ($10,000 in lease expense + the $35,000 impairment charge). Beginning in Year 4, and for the remainder of the lease term, the single lease cost recognized by Lessee in accordance with paragraphs <a href=\"/asc/842/20/#842-20-25-6\" class=\"xref\">842-20-25-6(a)</a> and <a href=\"/asc/842/20/#842-20-25-7\" class=\"xref\">842-20-25-7</a> will equal the sum of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B4D3A1-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amortization of the right-of-use asset remaining after the impairment ($18,893 ÷ 7 years = $2,699 per year)</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E4B4D4AC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Accretion of the lease liability. For example, in Year 4, the accretion is $3,773 ($53,893 × 7%) and, in Year 5, the accretion is $3,337 ($47,665 × 7%).</span></span> </div> </li> </ol> </div> </div>","snippet":"At the end of Year 3, when the carrying amount of the lease liability and the right-of-use asset are both $53,893, Lessee determines that the right-of-use asset is impaired in accordance with Section 360-10-35 and recogn…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7974125da56a59dd5f7535b8aa3b7da98eef9edc1e81bc8e4ad670fe89f75b7f","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-51","para":"55-51","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4D5C8-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Consequently, at the end of Year 4, the carrying amount of the lease liability is $47,665 (that is, calculated as either the present value of the remaining lease payments, discounted at 7 percent, or the previous balance of $53,893 - $10,000 Year 4 lease payment + the $3,773 accretion of the lease liability). The carrying amount of the right-of-use asset is $16,194 (the previous balance of $18,893 - $2,699 amortization). Lessee measures the lease liability and the right-of-use asset in this manner throughout the remainder of the lease term.</span></span> </div> </div>","snippet":"Consequently, at the end of Year 4, the carrying amount of the lease liability is $47,665 (that is, calculated as either the present value of the remaining lease payments, discounted at 7 percent, or the previous balance…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:46ce93e45d23609768c9bb38d18424767f7841507ea3edeea8b57cb26d1169e2","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-52","para":"55-52","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4D6F0-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Example 6 illustrates how a lessee may meet the quantitative disclosure requirements in paragraph <a href=\"/asc/842/20/#842-20-50-4\" class=\"xref\">842-20-50-4</a>.</span></span> </div> </div>","snippet":"Example 6 illustrates how a lessee may meet the quantitative disclosure requirements in paragraph 842-20-50-4.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b6cdda5987051b381ec2cadd91e2bd2ebcd2efe6c8f5c04ed11cb3467e0b7a0b","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}},{"citation":"842-20-55-53","para":"55-53","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E4B4D7FF-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The following Example illustrates how a lessee may meet the quantitative disclosure requirements in paragraph <a href=\"/asc/842/20/#842-20-50-4\" class=\"xref\">842-20-50-4</a>.</span></span> <ul class=\"ul simple\" id=\"SL77918981-209971__GUID-99616035-53DB-48B6-9F02-48A5008943D5\"> <li class=\"li\" id=\"SL77918981-209971__SL77927817-209971\"> <div class=\"p\"> <div class=\"fig figure fignone\"> <img src=\"/asc-img/GUID-A36B10C9-C8FC-424E-A406-F2DF6D2A1AE0-low.gif\" altsource=\"GUID-A36B10C9-C8FC-424E-A406-F2DF6D2A1AE0-low.gif\" alt=\" \" loading=\"lazy\"> <span class=\"sfragment\" id=\"sfr_E4B4DD49-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span> <div class=\"figcaption\">\"Year Ending December 31,\" 20X2 20X1 Lease cost Finance lease cost: $XXX $XXX Amortization of right-of-use assets XXX XXX Interest on lease liabilities XXX XXX Operating lease cost XXX XXX Short-term lease cost XXX XXX Variable lease cost XXX XXX Sublease income (XXX) (XXX) Total lease cost $XXX $XXX Other information \"(Gains) and losses on sale and leaseback transactions, net\" $(XXX) $XXX Cash paid for amounts included in the measurement of lease liabilities XXX XXX Operating cash flows from finance leases XXX XXX Operating cash flows from operating leases XXX XXX Financing cash flows from finance leases XXX XXX Right-of-use assets obtained in exchange for new finance lease liabilities XXX XXX Right-of-use assets obtained in exchange for new operating lease liabilities XXX XXX Weighted-average remaining lease term—finance leases\tX.X years X.X years Weighted-average remaining lease term—operating leases\tX.X years X.X years Weighted-average discount rate—finance leases\tX.X% X.X% Weighted-average discount rate—operating leases\tX.X% X.X%</div></div> </div> </li> </ul> </div> </div>","snippet":"The following Example illustrates how a lessee may meet the quantitative disclosure requirements in paragraph 842-20-50-4.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:006e840b2a37be96896f23d47bf870432bed70171d68ec8c96670857f89ab681","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0d8844eb46903a00604b333610f453df7755b821f20998b2b8fe7620e2fdbd02","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eda07bdf5139429777bd1cd4659302d1e13ee5ce41eac1ca3a13a1825b01952c","downloaded_from":"2026-09-10T01:56:58.743Z","last_downloaded_at":"2026-09-10T01:56:58.743Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479589","source_sha256":"b0af3768b25ee5a3e3b013714fb1236249fe9884530519d6a77f2c0dff7259ac"}}],"enrichment":{"summary":"ASC 842-20 governs how a lessee accounts for leases already classified as finance or operating leases under 842-10. At commencement the lessee recognizes a right-of-use asset and lease liability measured at the present value of unpaid lease payments (842-20-25-1; 30-1); thereafter finance leases produce separate amortization and interest (842-20-25-5), while operating leases produce a single straight-line lease cost (842-20-25-6). It also covers short-term lease policy elections, remeasurement, ROU asset impairment, leasehold improvements, subleases, terminations, and extensive presentation and disclosure requirements.","key_points":["At the commencement date a lessee recognizes a right-of-use asset and a lease liability (842-20-25-1); the liability is the present value of lease payments not yet paid using the rate implicit in the lease if readily determinable, otherwise the incremental borrowing rate (a non-public business entity may elect a risk-free rate by class of underlying asset) (842-20-30-1 through 30-3).","The ROU asset's initial cost equals the lease liability plus prepayments to the lessor less lease incentives received plus initial direct costs (842-20-30-5).","A lessee may elect, by class of underlying asset, not to recognize ROU assets and lease liabilities for short-term leases and instead recognize lease payments straight-line over the lease term (842-20-25-2); the lease ceases to be short term if a change extends the remaining term more than 12 months or a purchase option becomes reasonably certain (842-20-25-3).","For finance leases, the lessee recognizes amortization of the ROU asset plus interest on the liability using a constant periodic discount rate (842-20-25-5; 35-1); for operating leases, the lessee recognizes a single lease cost allocating the remaining cost of the lease (total lease payments plus initial direct costs less cost already recognized) straight-line over the remaining lease term (842-20-25-6(a); 25-8).","Variable lease payments not included in the liability are recognized in the period the obligation is incurred, but are accrued before the target is achieved when achievement is probable and reversed when it becomes probable the target will not be met (842-20-25-5(b); 55-1 through 55-2).","Remeasurement of the lease liability is recorded as an adjustment to the ROU asset (with any excess in profit or loss once the asset is zero), and the discount rate is updated at remeasurement except in the circumstances listed in 842-20-35-5 (842-20-35-4 through 35-5).","ROU assets are tested for impairment under Section 360-10-35; after impairment an operating lease ROU asset is amortized straight-line with separate accretion of the liability (842-20-25-7; 35-9 through 35-10), and leasehold improvements are amortized over the shorter of their useful life and the remaining lease term, with special common-control rules in 842-20-35-12A."],"categories":["Leases","Initial measurement","Subsequent measurement","Disclosure"],"audience_level":"intermediate","student_note":"This is the heart of the lessee model tested on the CPA exam: both lease types put an asset and liability on the balance sheet, and only the income statement pattern differs (front-loaded amortization plus interest for finance leases versus a level single lease cost for operating leases). The most common misunderstanding is thinking an operating lease ROU asset is amortized like a fixed asset — it is instead plugged to the lease liability adjusted for prepaid/accrued rent, unamortized initial direct costs, and remaining lease incentives, unless it has been impaired.","related_topics":["842-10","842-30","842-40","360-10","230-10","850-10"],"key_concepts":["right-of-use asset","lease liability","finance lease","operating lease","single lease cost","short-term lease election","incremental borrowing rate","remeasurement and impairment of rou asset"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:df8e09801c4cd3a936a1b3a1ca2d5f440ab511837ab9eca2257b0e569503d880","downloaded_from":"2026-09-10T01:56:28.044Z","last_downloaded_at":"2026-09-10T01:57:02.089Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"842-30","title":"Lessor","topic_title":"Leases","score":0.7937,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06766bca51fd34ee3de5d66b9c65a9e1a5230329a4682acd969459b8ae2af591","downloaded_from":"2026-09-10T01:57:05.183Z","last_downloaded_at":"2026-09-10T01:57:33.589Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"842-10","title":"Overall","topic_title":"Leases","score":0.782,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08a00c3677bf4e37f76a44a891c7968b772cdae14b70af1584e311f5cf993c9c","downloaded_from":"2026-09-10T01:55:43.879Z","last_downloaded_at":"2026-09-10T01:56:24.118Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"842-50","title":"Leveraged Lease Arrangements","topic_title":"Leases","score":0.7617,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70db74c227404cb3d5742b64c36dcecca130dc8ff5e355f098031cdbc669e4d2","downloaded_from":"2026-09-10T01:58:02.364Z","last_downloaded_at":"2026-09-10T01:58:37.823Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"842-40","title":"Sale and Leaseback Transactions","topic_title":"Leases","score":0.7518,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:032a9f4148f972cb214c9ad76d8daab794d0d2978f77ef580b55f9a219b609a3","downloaded_from":"2026-09-10T01:57:35.813Z","last_downloaded_at":"2026-09-10T01:57:59.856Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"842-980","title":"Regulated Operations","topic_title":"Leases","score":0.7516,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ea8f3895a8cb93183465c776ee9ce47aab3356cc34666e922b246244bc062ad6","downloaded_from":"2026-09-10T01:58:56.654Z","last_downloaded_at":"2026-09-10T01:59:18.312Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"410-20","title":"Asset Retirement Obligations","topic_title":"Asset Retirement and Environmental Obligations","score":0.7157,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4a526df5f47af651a64dc6fc36d7590d0ff088b7baa35ccf4cdcd7c359187fb","downloaded_from":"2026-09-10T00:20:40.400Z","last_downloaded_at":"2026-09-10T00:21:17.061Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"842-10","title":"Overall","topic_title":"Leases","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:195ad140e10c6898f08e27d4a1a70488b19798b59704561bd7a537bc21572006","downloaded_from":"2026-09-10T01:55:43.879Z","last_downloaded_at":"2026-09-10T01:56:24.118Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"842-30","title":"Lessor","topic_title":"Leases","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:72190b2f30acb725ba4deb724c68c45b4105df590acfe74be93ed48c20365c2b","downloaded_from":"2026-09-10T01:57:05.183Z","last_downloaded_at":"2026-09-10T01:57:33.589Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a61affa44d94b4392810bc01eea292746b0b3f2bf8609a4807e8d0b69278895d","downloaded_from":"2026-09-10T01:56:28.044Z","last_downloaded_at":"2026-09-10T01:57:02.089Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}