Issues In-depth  |  January 2019

Q&A Leases: Real estate lessors

KPMG provides ASC 842 real estate lessor guidance. KPMG answers frequently asked questions on applying the new leases standard for real estate lessors. 


Applying the new leases standard ASC 842 (ASU 2016-02, ASU 2018-01, ASU 2018-10, ASU 2018-11, ASU 2018-20)

  • Real estate industry
  • Real estate lessors in the scope of ASC 842

Relevant dates

Mandatory effective dates and early adoption provisions:

Effective date:

Public business entities

All other entities

Annual periods – Fiscal years beginning after

December 15, 2018

December 15, 2019

Interim periods – In fiscal years beginning after

December 15, 2018

December 15, 2020

Early adoption allowed?



Key Impacts

  • Q&As that answer questions from real estate lessors that we are encountering in practice
  • Includes guidance about recently issued and forthcoming amendments to ASC 842
  • References to where you can find more background and commentary in KPMG’s  Handbook, Leases 


KPMG’s webcast: New revenue and leases standards for real estate companies – frequently asked questions

Report contents

  • Scope and definition of a lease
  • Separating components of a contract
  • Lessor accounting
  • Other considerations 
  • Transition 

Related content

Spotlight on contributors

Scott Muir

Scott Muir

Partner, DPP , KPMG (US)

+1 212-909-5073
Angie Storm

Angie Storm

Partner, Dept. of Professional Practice, KPMG (US)

+1 212-909-5488
Landon Westerlund

Landon Westerlund

Partner, Department of Professional Practice, KPMG (US)

+1 212-909-5553



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