{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/842/50/#25-recognition","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":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"842-50-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E6DA7847-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A <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> shall record its investment in a <a href=\"/glossary/l/#leveraged-lease\" class=\"term\" title=\"From the perspective of a lessor, a lease that was classified as a leveraged lease in accordance with the leases guidance in effect before the effective date and for which the commencement date is before the effective date.\"><span>leveraged lease</span></a>. The net of the balances of the following accounts as measured in accordance with this Subtopic shall represent the lessor's initial and continuing investment in leveraged leases:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E6DA7983-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Rentals receivable</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E6DA7A5D-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Investment-tax-credit receivable</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">c</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E6DA7B1D-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> <a href=\"/glossary/e/#estimated-residual-value\" class=\"term\" title=\"The estimated fair value of the leased property at the end of the lease term.\"><span>Estimated residual value</span></a> of the leased asset</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">d</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_E6DA7BD4-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Unearned and deferred income.</span></span> </div> </li> </ol> </div> </div>","snippet":"A lessor shall record its investment in a leveraged lease. The net of the balances of the following accounts as measured in accordance with this Subtopic shall represent the lessor's initial and continuing investment in …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ef10122a14a0897a8161e382d0561450ba5c9bea3b10a082eccb211aa4b73a7","downloaded_from":"2026-09-10T01:58:14.003Z","last_downloaded_at":"2026-09-10T01:58:14.003Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479295","source_sha256":"6691285f4592d371b22f1cab48c1b65908db9022ce7470262ce1eddf1434a820"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3bc53caf5e92655c75ae0eb7ab2d9b8946213f0662a3c1bef8d9974cf1b98f51","downloaded_from":"2026-09-10T01:58:14.003Z","last_downloaded_at":"2026-09-10T01:58:14.003Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479295","source_sha256":"6691285f4592d371b22f1cab48c1b65908db9022ce7470262ce1eddf1434a820"}},{"block":null,"heading":"Leveraged Lease Acquired in a Business Combination or an Acquisition by a Not-for-Profit Entity","paragraphs":[{"citation":"842-50-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_E6DA7C9F-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In a business combination or 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>, the acquiring entity shall retain the classification of the acquired entity's investment as a <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> in a <a href=\"/glossary/l/#leveraged-lease\" class=\"term\" title=\"From the perspective of a lessor, a lease that was classified as a leveraged lease in accordance with the leases guidance in effect before the effective date and for which the commencement date is before the effective date.\"><span>leveraged lease</span></a> at the date of the combination. The net investment of the acquired leveraged lease shall be disaggregated into its component parts, namely net rentals receivable, <a href=\"/glossary/e/#estimated-residual-value\" class=\"term\" title=\"The estimated fair value of the leased property at the end of the lease term.\"><span>estimated residual value</span></a>, and unearned income including discount to adjust other components to present value.</span></span> </div> </div>","snippet":"In a business combination or an acquisition by a not-for-profit entity, the acquiring entity shall retain the classification of the acquired entity's investment as a lessor in a leveraged lease at the date of the combina…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dcf5486765ef126e63678be1a6a9c3a9802a5129cbf724e32213a858e4ac4f4d","downloaded_from":"2026-09-10T01:58:14.003Z","last_downloaded_at":"2026-09-10T01:58:14.003Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479295","source_sha256":"6691285f4592d371b22f1cab48c1b65908db9022ce7470262ce1eddf1434a820"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6c858352af35080d010d21029a72a4916d386e7fc7eea5498ac7beb05191dcaa","downloaded_from":"2026-09-10T01:58:14.003Z","last_downloaded_at":"2026-09-10T01:58:14.003Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479295","source_sha256":"6691285f4592d371b22f1cab48c1b65908db9022ce7470262ce1eddf1434a820"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6d6d1aff1ea242d159b738fda0edba6b1e16d4b591e396b2f0af0946dfd2a51","downloaded_from":"2026-09-10T01:58:14.003Z","last_downloaded_at":"2026-09-10T01:58:14.003Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479295","source_sha256":"6691285f4592d371b22f1cab48c1b65908db9022ce7470262ce1eddf1434a820"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6d6d1aff1ea242d159b738fda0edba6b1e16d4b591e396b2f0af0946dfd2a51","downloaded_from":"2026-09-10T01:58:14.003Z","last_downloaded_at":"2026-09-10T01:58:14.003Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479295","source_sha256":"6691285f4592d371b22f1cab48c1b65908db9022ce7470262ce1eddf1434a820"}}