# ASC 842-980-55: Leases — Regulated Operations — 55 Implementation Guidance and Illustrations

Source: FASB Accounting Standards Codification, Basic View

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## ASC 842-980-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/842/980/#55-implementation-guidance-and-illustrations)

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#### Implementation Guidance

##### [842-980-55-1](https://asc.understandingaccounting.org/asc/842/980/#842-980-55-1)

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Paragraph [842-20-45-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-45-4) states that an entity is not required to classify the interest expense and amortization of the right-of-use asset in a finance lease as separate items in an income statement. However, that paragraph also states that the interest expense and the amortization of the right-of-use asset in a finance lease should be presented in a manner consistent with how the entity presents depreciation or amortization of similar assets and other interest expense. For example, the amounts of amortization of the right-of-use asset and interest on the related lease liability could each be combined with other costs and presented in a manner consistent with how the entity presents depreciation or amortization of similar assets and other interest expense. However, in that circumstance, the disclosure of total interest cost incurred, required by Subtopic 835-20, would include the interest on that lease liability, and the disclosure of the total amortization of the entity's right-of-use assets arising under a finance lease and interest on finance lease liabilities, required by Section 842-20-50, would include amortization of that right-of-use asset and interest on that lease liability.