# ASC 842-30-50: Leases — Lessor — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/842/30/#50-disclosure) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:e228df121a0928ecf2d756a04943112ec1f5265567a8abd2096f0395c773eb4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 842-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/842/30/#50-disclosure) SEC content: no ##### [842-30-50-1](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:cd0ca2dcdba9aa1296775c9574284c162b93f047375247c622feacb0f3f77d24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of the disclosure requirements is to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from [leases](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration."). To achieve that objective, a [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 disclose qualitative and quantitative information about all of the following: 1. a Its leases (as described in paragraphs [842-30-50-3(a)](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-3), [842-30-50-4](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-4), and [842-30-50-7](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-7)) 2. b The significant judgments made in applying the requirements in this Topic to those leases (as described in paragraph [842-30-50-3(b)](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-3)) 3. c The amounts recognized in the financial statements relating to those leases (as described in paragraphs [842-30-50-5 through 50-6](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-5) and [842-30-50-8 through 50-13](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-8) ). ##### [842-30-50-2](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:e5dc9fb2442e748eeec81c01cf36d39d260ede15cfd12256081749d2ad106676 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor 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 lessor shall aggregate or disaggregate disclosures so that useful information is not obscured by including a large amount of insignificant detail or by aggregating items that have different characteristics. ##### [842-30-50-3](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:aa48e9610ad6010b3ee3c9aef88ee51bd5457125f3250f278894df8220e1c7dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor shall disclose both of the following: 1. a Information about the nature of its leases, including: 1. 1 A general description of those leases 2. 2 The basis and terms and conditions on which [variable lease payments](https://asc.understandingaccounting.org/glossary/v/#variable-lease-payments "Payments made by a lessee to a lessor for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.") are determined 3. 3 The existence and terms and conditions of options to extend or terminate the lease 4. 4 The existence and terms and conditions of options for a [lessee](https://asc.understandingaccounting.org/glossary/l/#lessee "An entity that enters into a contract to obtain the right to use an underlying asset for a period of time in exchange for consideration.") to purchase 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."). 2. b Information about significant assumptions and judgments made in applying the requirements of this Topic, which may include the following: 1. 1 The determination of whether a [contract](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") contains a lease (as described in paragraphs [842-10-15-2 through 15-27](https://asc.understandingaccounting.org/asc/842/10/#842-10-15-2) ) 2. 2 The allocation of the consideration in a contract between lease and nonlease components (as described in paragraphs [842-10-15-28 through 15-32](https://asc.understandingaccounting.org/asc/842/10/#842-10-15-28) ), unless a lessor elects the practical expedient in paragraph [842-10-15-42A](https://asc.understandingaccounting.org/asc/842/10/#842-10-15-42A) and all nonlease components in the contract qualify for that practical expedient 3. 3 The determination of the amount the lessor expects to derive from the underlying asset following the end of the [lease term](https://asc.understandingaccounting.org/glossary/l/#lease-term "The noncancellable period for which a lessee has the right to use an underlying asset, together with all of the following: Periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option Periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option Periods covered by an option to extend (or not to terminate) the lease in which exercise of the option is controlled by the lessor."). ##### [842-30-50-3A](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-3A) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:73152543b452ad8319bf5be328c6083320b3b929068f191f717c6705cea38a88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that elects the practical expedient in paragraph [842-10-15-42A](https://asc.understandingaccounting.org/asc/842/10/#842-10-15-42A) on not separating nonlease components from associated lease components (including an entity that accounts for the combined component entirely in Topic 606 on revenue from contracts with customers) shall disclose the following, by class of underlying asset: 1. a Its accounting policy election and the class or classes of underlying assets for which it has elected to apply the practical expedient 2. b The nature of: 1. 1 The lease components and nonlease components combined as a result of applying the practical expedient 2. 2 The nonlease components, if any, that are accounted for separately from the combined component because they do not qualify for the practical expedient 3. c The Topic the entity applies to the combined component (this Topic or Topic 606). ##### [842-30-50-4](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:89b9f0b4a089724aa02a2e81108abf5c3d23c9478d2234efe44b580a1f65f816 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor shall disclose any lease transactions between related parties (see Topic 850 on related party disclosures). ##### [842-30-50-5](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:1ad1027c46eb00122c0e1372ee4c6a908a749d46ab140afc1ae2af43f4a615d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor shall disclose lease income recognized in each annual and interim reporting period, in a tabular format, to include the following: 1. a For [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."): 1. 1 Profit or loss 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.") (disclosed on a gross basis or a net basis consistent with paragraph [842-30-45-4](https://asc.understandingaccounting.org/asc/842/30/#842-30-45-4)) 2. 2 Interest income either in aggregate or separated by components of the [net investment in the lease](https://asc.understandingaccounting.org/glossary/n/#net-investment-in-the-lease "For a sales-type lease, the sum of the lease receivable and the unguaranteed residual asset. For a direct financing lease, the sum of the lease receivable and the unguaranteed residual asset, net of any deferred selling profit."). 2. b For [operating leases](https://asc.understandingaccounting.org/glossary/o/#operating-lease "From the perspective of a lessee, any lease other than a finance lease. From the perspective of a lessor, any lease other than a sales-type lease or a direct financing lease."), lease income relating to [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."). 3. c Lease income relating to variable lease payments not included in the measurement 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."). ##### [842-30-50-6](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:a6755ec0c510daa73422e141c3572a17cf0c9078929f711b0b37dd55ac343b4d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor shall disclose in the notes the components of its aggregate net investment in sales-type and direct financing leases (that is, the carrying amount of its lease receivables, its [unguaranteed residual assets](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."), and any deferred selling profit on direct financing leases). ##### [842-30-50-7](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:ca2b0908dbe7c3172ad1fb43a8e196c2c4c2eeafe9b5c86104e578e890595eee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor shall disclose information about how it manages its risk associated with the residual value of its leased assets. In particular, a lessor should disclose all of the following: 1. a Its risk management strategy for residual assets 2. b The carrying amount of residual assets covered by [residual value guarantees](https://asc.understandingaccounting.org/glossary/r/#residual-value-guarantee "A guarantee made to a lessor that the value of an underlying asset returned to the lessor at the end of a lease will be at least a specified amount.") (excluding guarantees considered to be lease payments for the lessor, as described in paragraph [842-30-30-1(a)(2)](https://asc.understandingaccounting.org/asc/842/30/#842-30-30-1)) 3. c Any other means by which the lessor reduces its residual asset risk (for example, buyback agreements or variable lease payments for use in excess of specified limits). #### Sales-Type and Direct Financing Leases ##### [842-30-50-8](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:b944120d14edb4dc40649960b2ee3cce835741768ec225f9dfa08f4366f9e8ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to the disclosures required by paragraphs [842-30-50-3 through 50-7](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-3) , 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.") also shall provide the disclosures in paragraphs [842-30-50-9 through 50-10](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-9) for [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."). ##### [842-30-50-9](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:1b7b73836f08842044dc424470d3138a6319e1d883304bae6ff274784219dba6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor shall explain significant changes in the balance of its [unguaranteed residual assets](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.") and deferred selling profit on direct financing leases. ##### [842-30-50-10](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:13d78fc95343961e49b2d3f87880ce453b23196fa82a7c533e9cb8861dc15085 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor shall disclose a maturity analysis of its [lease receivables](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."), showing the undiscounted cash flows to be received 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 lessor shall disclose a reconciliation of the undiscounted cash flows to the lease receivables recognized in the statement of financial position (or disclosed separately in the notes). #### Operating Leases ##### [842-30-50-11](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:43291e6f03ea740c5682c8d34252c4070a1820c5da94b9a8aed620b4f83a2885 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to the disclosures required by paragraphs [842-30-50-3 through 50-7](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-3) , 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.") also shall provide the disclosures in paragraphs [842-30-50-12 through 50-13](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-12) for [operating leases](https://asc.understandingaccounting.org/glossary/o/#operating-lease "From the perspective of a lessee, any lease other than a finance lease. From the perspective of a lessor, any lease other than a sales-type lease or a direct financing lease."). ##### [842-30-50-12](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:08ba1068c77c591987eded84121fd06fbf449fcb4b1a1de61fe2a4270941ee7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor shall disclose a maturity analysis of [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."), showing the undiscounted cash flows to be received 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 lessor shall present that maturity analysis separately from the maturity analysis required by paragraph [842-30-50-10](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-10) for [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."). ##### [842-30-50-13](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:0459cf442b69021cfe2e80b4f64631b9fb1f66bec24b1189d1e6c6f3229a76ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor shall provide disclosures required by Topic 360 on property, plant, and equipment separately for [underlying assets](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.") under operating leases from owned assets. #### Separating Components of a Contract ##### [842-30-50-14](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:57:28.840Z to 2026-09-10T01:57:28.840Z Record version: sha256:2e2696f197ad2fcaeb50282a5daa957ccd7946987d7d6e4996808c315649defd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lessor that makes the accounting policy election in paragraph [842-10-15-39A](https://asc.understandingaccounting.org/asc/842/10/#842-10-15-39A) shall disclose its accounting policy election and comply with the disclosure requirements in paragraphs [235-10-50-1 through 50-6](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-1) .