Whereas in the past, a finance lease was presented on the balance sheet while an operating lease could be expensed through the income statement, with the introduction of ASC 842, IFRS 16, and GASB 87, all types of leases are now presented on the balance sheet.
In terms of whether a lease is a finance lease or an operating lease under ASC 842, the standard sets out specific criteria that need to be met for the lease to be classified as a finance lease. Note that only one of these criteria needs to be met for the lease to be classified as a finance lease.