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Presentation and disclosure

ASC 842-30-50-10
A lessor shall disclose a maturity analysis of its lease receivables, showing the undiscounted cash flows
to be received on an annual basis for a minimum of each of the first five years and a total of the
amounts for the remaining years. A lessor shall disclose a reconciliation of the undiscounted cash
flows to the lease receivables recognized in the statement of financial position (or disclosed separately
in the notes).

A lessor is also required to disclose its lease income in a tabular format in each annual and interim
reporting period. For sales-type and direct financing leases, this tabular disclosure should include the
following:

□ Profit or loss recognized at the commencement date, disclosed on either a gross or net basis
based on its business model

□ Interest income, either in aggregate or separated by components of the net investment in the
lease

□ Lease income relating to variable lease payments not included in the measurement of the lease
receivable

A lessor should also disclose the components of its aggregate net investment in sales-type leases and
direct financing leases including:

□ The carrying amount of its lease receivables

□ Its unguaranteed residual assets

□ Any deferred selling profit in direct financing leases (which is a reduction to the net
investment)

9.3.4.2 Operating lease

In addition to the general disclosures discussed previously, a lessor should disclose the following with
respect to operating leases:

□ A maturity analysis of lease payments, showing the undiscounted cash flows to be received on
an annual basis for a minimum of the next five years and the total lease payments to be
received in the remaining years. The maturity analysis for operating leases should not be
combined with the maturity analysis for sales-type and direct financing leases

□ The property, plant, and equipment disclosures required by ASC 360 separate from owned
assets held and used by the lessor

A lessor is also required to disclose its lease income in a tabular format for each annual and interim
reporting period. For operating leases, this tabular disclosure should include lease income relating to
lease payments, including lease income relating to variable lease payments.

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