legacy lease accounting

Broad Transactions3

1. 840-10Overall840 Leases

   ASC 840-10 was the "Overall" subtopic of the legacy U.S. GAAP lease model, containing the scope, lease classification criteria (capital vs. operating), lease term and minimum lease payment definitions, and related implementation guidance for both lessees and lessors. Every substantive paragraph in this subtopic has been superseded by Accounting Standards Update No. 2016-02 (and one paragraph, 840-10-60-3, by ASU 2014-09), which replaced Topic 840 with Topic 842. As currently codified, 840-10 contains no operative guidance.

2. 840-20Operating Leases840 Leases

   ASC 840-20 formerly contained the legacy accounting for operating leases by lessees and lessors, but every paragraph in the subtopic has been superseded and it now carries no operative guidance. The bulk of the supersessions were made by ASU 2016-02, which replaced Topic 840 with Topic 842, while two derecognition paragraphs (840-20-40-3 and 840-20-40-4) were superseded by ASU 2014-09 on revenue. Readers seeking current operating lease rules must consult Topic 842.

3. 840-974Real Estate—Real Estate Investment Trusts840 Leases

   This subtopic previously provided lease guidance specific to real estate investment trusts (REITs) within the legacy leases topic (ASC 840). All of its content — the overview (05-1), scope (15-1), and recognition (25-1) paragraphs — was superseded by ASU 2016-02, which replaced ASC 840 with ASC 842. There is accordingly no substantive guidance remaining here.