Podcast: Common control lease arrangements

KPMG professionals discuss recent changes to ASC 842 for common control arrangements and related leasehold improvements.

John Barbagallo

John Barbagallo

Managing Director, Dept. of Professional Practice, KPMG US

+1 212-954-7258

Robin Van Voorhies

Robin Van Voorhies

Senior Director, Dept. of Professional Practice, KPMG US

+1 617-988-5637

Corey Glidden

Corey Glidden

Senior Manager, Dept. of Professional Practice, KPMG US

+1 503 820 6411

Podcast overview

KPMG professionals discuss ASU 2023-01, including the scope and key provisions of the amendments, effective dates, transition and special considerations for private entities that have not yet reported under ASC 842. 


  • All private entities with common control arrangements that may contain or be leases
  • All lessees (public or private) with recognized leasehold improvements related to common control leases

Relevant dates

The amendments in ASU 2023-01 are effective for all entities in interim and annual periods beginning after December 31, 2023. Early adoption is permitted for interim and annual financial statements not yet available for issuance as of the beginning of the entity’s relevant fiscal year.

Entities may early adopt the terms and conditions amendments independent of the amendments related to the accounting for leasehold improvements, and vice versa.  

Podcast contents

  • 00:20 – Introduction
  • 00:45 – Overview of ASU 2023-01
  • 02:20 – Key impacts
  • 05:10 – Determining whether terms and conditions are “written”
  • 05:45 – Adoption timing and transition approach
  • 07:20 – Impact to first time adopters of Topic 842