Leases
Overview
ASC 840 comprises four Subtopics, below is an overview of each Subtopic.
840-10 Overall
ASC 840-10 notes that it “establishes the classification criteria for all leases and provides accounting and financial reporting guidance that applies without regard to a lease’s classification.”
840-20 Operating Leases
ASC 840-20 notes that it “addresses accounting by lessees and lessors for leases that have been classified as operating leases in accordance with the guidance in Subtopic 840-10.”
840-30 Capital Leases
ASC 840-30 notes that it “addresses accounting by lessees and lessors for leases that have been classified as capital leases in accordance with the guidance in Subtopic 840-10.”
840-40 Sale-Leaseback Transactions
ASC 840-40 notes the following:
This Subtopic addresses accounting by lessees and lessors for sale-leaseback transactions.
Sale-leaseback transactions involve the sale of property by the owner and a lease of the property back to the seller.