Here is a table showing the criteria needed to be classified as a finance (previously called capital) or operating lease.

If you have any questions about ASU 2016-02 (topic ASC 842) and/or ASU 2018-11, please contact your Hawkins Ash CPAs representative.

NOTE: FASB has proposed a delay to this standard for one year which, if approved, would make it effective for years beginning after December 15, 2020.