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This chapter addresses the initial and subsequent accounting for a lease by a lessor and a lessee, including impairment and derecognition.
While lease classification does not impact the initial recognition of leases on the balance sheet for a lessee, how a lease is classified will determine how lease expense is recognized in the income statement subsequent to initial recognition. For a lessor, the initial and subsequent recognition of a lease depends on its classification. LG 4.2 and LG 4.3 discuss the initial recognition and measurement for a lessee and a lessor. LG 4.4 and LG 4.5 discuss the impact of lease classification on the accounting subsequent to initial recognition. LG 4.6 and LG 4.7 discuss the impairment model to be used by lessees and lessors. Lease classification is discussed in LG 3.
The modification, remeasurement, and termination of a lease are discussed in LG 5.

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