Prior to ARB 38, the accounting procedure for lease payments was to record them as periodic revenues for lessors and as purchases of assets for lessees.

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Prior to ASC 842 (formerly known as FASB Statement No. 13), lease payments were generally recorded as rental expense for lessees and rental income for lessors, not as purchases of assets for lessees or periodic revenues for lessors.

Prior to ARB 38, the Accounting Procedure for Lease Payments