{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/842/50/#15-scope-and-scope-exceptions","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.","topic":"842","topic_title":"Leases","subtopic":"842-50","subtopic_title":"Leveraged Lease Arrangements","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"842-50-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-78691675-DF2D-41AE-BE85-48A51D2DC3CB\"><span class=\"sfragment-source\">This Subtopic addresses accounting 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 meet the criteria in transition paragraph <a href=\"/asc/842/10/#842-10-65-1\" class=\"xref\">842-10-65-1(z)</a>. If 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> exercises an option to extend a lease that meets the criteria in transition paragraph <a href=\"/asc/842/10/#842-10-65-1\" class=\"xref\">842-10-65-1(z)</a> that it was not previously reasonably assured of exercising, the exercise of that option shall be considered 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> as described in paragraph <a href=\"/asc/842/10/#842-10-65-1\" class=\"xref\">842-10-65-1(z)</a>. </span></span><span class=\"sfragment\" id=\"GUID-49531868-FA0D-463F-8CCC-07B36F4F6AE9\"><span class=\"sfragment-source\">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> formation accounted for in accordance with Subtopic <a altsource=\"GUID-CE09B826-CDC8-43FF-A1EF-FB86248E753A.ditamap\" class=\"ditamap\">805-60</a> shall apply the guidance in this Subtopic applicable to the acquiring entity 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>. The joint venture shall be viewed as analogous to the acquiring entity in a business combination, and any recognized businesses and/or assets shall be viewed as analogous to an <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>.</span></span></div></div></div>","snippet":"This Subtopic addresses accounting for leases that meet the criteria in transition paragraph 842-10-65-1(z). If a lessee exercises an option to extend a lease that meets the criteria in transition paragraph 842-10-65-1(z…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7e49666ba02522fc00a7bf7e893b48f5f075467e2dd72c0705a10e9055284741","downloaded_from":"2026-09-10T01:58:09.284Z","last_downloaded_at":"2026-09-10T01:58:09.284Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479509","source_sha256":"cf58fb3f827c243d7229c245eb568baf4ad951181b548b1cedb12436a26768ba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:022ff34e5f9b5f9daef915e60ea9bffea31e5257ccb6abd5a59433eda039778e","downloaded_from":"2026-09-10T01:58:09.284Z","last_downloaded_at":"2026-09-10T01:58:09.284Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479509","source_sha256":"cf58fb3f827c243d7229c245eb568baf4ad951181b548b1cedb12436a26768ba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9091a875609c6873c56a2833ded3b03f163fc1ec71616972bac8a49c2bdec815","downloaded_from":"2026-09-10T01:58:09.284Z","last_downloaded_at":"2026-09-10T01:58:09.284Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479509","source_sha256":"cf58fb3f827c243d7229c245eb568baf4ad951181b548b1cedb12436a26768ba"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9091a875609c6873c56a2833ded3b03f163fc1ec71616972bac8a49c2bdec815","downloaded_from":"2026-09-10T01:58:09.284Z","last_downloaded_at":"2026-09-10T01:58:09.284Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479509","source_sha256":"cf58fb3f827c243d7229c245eb568baf4ad951181b548b1cedb12436a26768ba"}}