# ASC 842-30-45: Leases — Lessor — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/842/30/#45-other-presentation-matters) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:57:26.511Z to 2026-09-10T01:57:26.511Z Record version: sha256:d8d7a65c63f608461ba7d9b696c2cbc0655f1dbcb1a8470e8ea902176f052795 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 842-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/842/30/#45-other-presentation-matters) SEC content: no #### Sales-Type and Direct Financing Leases ##### [842-30-45-1](https://asc.understandingaccounting.org/asc/842/30/#842-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:26.511Z to 2026-09-10T01:57:26.511Z Record version: sha256:e0d2f1ce3e9a028b576183c2f8a3d8036c7ee9881cf4f836c08f052d2343a0b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [lessor](https://asc.understandingaccounting.org/glossary/l/#lessor "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.") shall present lease assets (that is, the aggregate of the lessor's net investment in [sales-type leases](https://asc.understandingaccounting.org/glossary/s/#sales-type-lease "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.") and [direct financing leases](https://asc.understandingaccounting.org/glossary/d/#direct-financing-lease "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.")) separately from other assets in the statement of financial position. ##### [842-30-45-2](https://asc.understandingaccounting.org/asc/842/30/#842-30-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:26.511Z to 2026-09-10T01:57:26.511Z Record version: sha256:4b414c1db85eb45cc88218313f309c68e1a6c0d84b1640ea650461a6f76f5a28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Lease](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.") assets shall be subject to the same considerations as other assets in classification as current or noncurrent assets in a classified balance sheet. ##### [842-30-45-3](https://asc.understandingaccounting.org/asc/842/30/#842-30-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:26.511Z to 2026-09-10T01:57:26.511Z Record version: sha256:c47b23efe1fc244708960bde7c13dd22f6fe5ccf6304920c44989b1a4137ac05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [lessor](https://asc.understandingaccounting.org/glossary/l/#lessor "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.") shall either present in the statement of comprehensive income or disclose in the notes income arising from [leases](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration."). If a lessor does not separately present lease income in the statement of comprehensive income, the lessor shall disclose which line items include lease income in the statement of comprehensive income. ##### [842-30-45-4](https://asc.understandingaccounting.org/asc/842/30/#842-30-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:26.511Z to 2026-09-10T01:57:26.511Z Record version: sha256:108f7aa93df2dd682b86e3fd82b8edf993d623d69ce1824ba487859d64faf5a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor shall present any profit or loss on the lease recognized at the [commencement date](https://asc.understandingaccounting.org/glossary/c/#commencement-date-of-the-lease-commencement-date "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.") in a manner that best reflects the lessor's business model(s). Examples of presentation include the following: 1. a If a lessor uses leases as an alternative means of realizing value from the goods that it would otherwise sell, the lessor shall present revenue and cost of goods sold relating to its leasing activities in separate line items so that income and expenses from sold and leased items are presented consistently. Revenue recognized is the lesser of: 1. 1 The [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") of the [underlying asset](https://asc.understandingaccounting.org/glossary/u/#underlying-asset "An asset that is the subject of a lease for which a right to use that asset has been conveyed to a lessee. The underlying asset could be a physically distinct portion of a single asset.") at the commencement date 2. 2 The sum of the [lease receivable](https://asc.understandingaccounting.org/glossary/l/#lease-receivable "A lessor's right to receive lease payments arising from a sales-type lease or a direct financing lease plus any amount that a lessor expects to derive from the underlying asset following the end of the lease term to the extent that it is guaranteed by the lessee or any other third party unrelated to the lessor, measured on a discounted basis.") and any [lease payments](https://asc.understandingaccounting.org/glossary/l/#lease-payments "See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.") prepaid by the [lessee](https://asc.understandingaccounting.org/glossary/l/#lessee "An entity that enters into a contract to obtain the right to use an underlying asset for a period of time in exchange for consideration."). Cost of goods sold is the carrying amount of the underlying asset at the commencement date minus the [unguaranteed residual asset](https://asc.understandingaccounting.org/glossary/u/#unguaranteed-residual-asset "The amount that a lessor expects to derive from the underlying asset following the end of the lease term that is not guaranteed by the lessee or any other third party unrelated to the lessor, measured on a discounted basis."). 2. b If a lessor uses leases for the purposes of providing finance, the lessor shall present the profit or loss in a single line item. ##### [842-30-45-5](https://asc.understandingaccounting.org/asc/842/30/#842-30-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:26.511Z to 2026-09-10T01:57:26.511Z Record version: sha256:077397d8a509ce286b6dbbc27523ba6f26c188e5d1d08d0ed4a3637d20c817a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the statement of cash flows, a [lessor](https://asc.understandingaccounting.org/glossary/l/#lessor "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.") shall classify cash receipts from [leases](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.") within operating activities. However, if the lessor is within the scope of Topic 942 on financial services—depository and lending, it shall follow the guidance in paragraph [942-230-45-4](https://asc.understandingaccounting.org/asc/230/942/#230-942-45-4) for the presentation of principal payments received from leases. #### Operating Leases ##### [842-30-45-6](https://asc.understandingaccounting.org/asc/842/30/#842-30-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:26.511Z to 2026-09-10T01:57:26.511Z Record version: sha256:c84ea8047f1d0bec0e775f1baad7cf678785482780ad6158d7be271ccb8d3e2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [lessor](https://asc.understandingaccounting.org/glossary/l/#lessor "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.") shall present the [underlying asset](https://asc.understandingaccounting.org/glossary/u/#underlying-asset "An asset that is the subject of a lease for which a right to use that asset has been conveyed to a lessee. The underlying asset could be a physically distinct portion of a single asset.") subject to an [operating lease](https://asc.understandingaccounting.org/glossary/o/#operating-lease "From the perspective of a lessee, any lease other than a finance lease. From the perspective of a lessor, any lease other than a sales-type lease or a direct financing lease.") in accordance with other Topics. ##### [842-30-45-7](https://asc.understandingaccounting.org/asc/842/30/#842-30-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:26.511Z to 2026-09-10T01:57:26.511Z Record version: sha256:55508a5c923d05748cf9dc1a4c423383c883b3dc47866aa2c602b425feeb1efb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the statement of cash flows, a [lessor](https://asc.understandingaccounting.org/glossary/l/#lessor "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.") shall classify cash receipts from [leases](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.") within operating activities.