# ASC 842-40-15: Leases — Sale and Leaseback Transactions — 15 Scope and Scope Exceptions

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/842/40/#15-scope-and-scope-exceptions)

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## ASC 842-40-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/842/40/#15-scope-and-scope-exceptions)

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##### [842-40-15-1](https://asc.understandingaccounting.org/asc/842/40/#842-40-15-1)

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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic; see Section 842-10-15.

##### [842-40-15-2](https://asc.understandingaccounting.org/asc/842/40/#842-40-15-2)

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If an entity (the seller-lessee) transfers an asset to another entity (the buyer-lessor) and leases that asset back from the buyer-lessor, both the seller-lessee and the buyer-lessor shall account for the transfer [contract](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") and the [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.") in accordance with Sections 842-40-25, 842-40-30, and 842-40-50.

##### [842-40-15-3](https://asc.understandingaccounting.org/asc/842/40/#842-40-15-3)

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See paragraphs

[842-40-55-1 through 55-21](https://asc.understandingaccounting.org/asc/842/40/#842-40-55-1)

for implementation guidance on the scope of this Subtopic. See Example 3 (paragraphs

[842-40-55-39 through 55-44](https://asc.understandingaccounting.org/asc/842/40/#842-40-55-39)

) for an illustration of the scope of this Subtopic.