Handbooks   |   December 2018

Handbook: Leases

In this handbook, KPMG explains the new leases standard (ASC 842) in detail. We provide detailed Q&As, examples and observations, as well as comparisons to legacy US GAAP, updated for recently issued and forthcoming amendments to the standard and continuing developments in practice.


ASC Topic 842 (ASU 2016-02, ASU 2018-01, ASU 2018-10, ASU 2018-11, ASU 2018-20*)

  • All companies with contracts in the scope of ASC 842

* See ‘Future developments’ in chapters 4, 7 and 12.

Relevant dates

Mandatory effective dates and early adoption provisions

Effective date:


Annual periods –
In fiscal years beginning after

Public business entities and certain not-for-profit entities*:

December 15, 2018

All other entities:

December 15, 2019

Interim periods – In fiscal years beginning after

December 15, 2018

December 15, 2020


Early adoption allowed?




* (1) public business entities; (2) not-for-profits that have issued, or are conduit bond obligors for, securities that are traded, listed or quoted on an exchange or an over-the-counter market; and (3) employee benefit plans that file financial statements with the SEC.

Key impacts

  • Q&As that answer the questions we are encountering in practice
  • Examples and observations to explain key concepts
  • Changes from legacy US GAAP
  • Updated for recently issued and forthcoming amendments to ASC 842, practice developments and evolving interpretations

Report contents

  • Scope and definition of a lease
  • Identifying and separating components of a contract
  • Concepts and definitions applicable to lessees and lessors
  • Lessee accounting model
  • Lessor accounting model
  • Subleases
  • Sale-leaseback accounting
  • Income tax effects
  • Leases acquired in a business combination
  • Disclosures, effective date and transition

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Spotlight on contributors

Kimber Bascom

Kimber Bascom

Partner, DPP, KPMG (US)

+1 212-909-5664
Halie Creps

Halie Creps

Partner, Audit, KPMG (US)

+1 (212) 954 3622
Scott Muir

Scott Muir

Partner, DPP , KPMG (US)

+1 212-909-5073



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