ASC 842, Leases, (the leases standard) provides guidelines for presenting and disclosing lease arrangements. This chapter provides an overview of those requirements for both lessees and lessors.

The objective of the disclosure requirements in the leases standard is to enable financial statement users to understand the amount, timing, and uncertainty of cash flows arising from leases. To achieve this objective, lessees and lessors are required to disclose qualitative and quantitative information about their leases, the significant judgments made in applying the lease guidance, and the amounts recognized in the financial statements related to those leases. Reporting entities should provide the appropriate level of detail so that the information provided is meaningful to financial statement users.