This is the intoduction I wrote for my acccounting project.

Introduction

ASC 840, Leases and FASB Statement No. 13, Accounting for Leases covers the standards of financial accounting and reporting for leases by lessee and lessor. A lease is a contract in which the lessor gives the lessee the right to use an asset (property, plant and equipment) for a specified period of time in exchange for periodic rental payments. The lessor is the owner of the property and the lessee is a tenant or renter. Most frequent examples of assets acquired by lease include automobiles, building space, computers and equipment.
NeedsSpace entered into a lease agreement with WeHaveIt to rent space for its corporate offices. The lease is classified as an Operating Lease in accordance with ASC 840, Leases and FASB Statement No. 13, Accounting for Leases. What is an Operating Lease? An Operating Lease is when the lessor gives the lessee the right to use leased property for a limited period of time but retain all the risks and the rewards of ownership. The lease also has a 10 year lease term and there is no option to renew nor is the ability to negotiate for the renewal provided in the lease agreement. Lease term defined in FASB 13 states:
“The fixed non-cancelable term of the lease plus all periods, if any, covered by bargain renewal options, all periods, if any, for which failure to renew the lease imposes a penalty on the lessee in an amount such that renewal appears, at the inception of the lease, to be reasonably assured, all periods, if any, covered by ordinary renewal options during which a guarantee by the lessee of the lessor's debt related to the leased property is expected to be in effect, all periods, if any, covered by ordinary renewal options preceding the date as of which a bargain purchase option is exercisable, and all periods, if any, representing renewals or