Q&A | February 2020

Real estate revenue guide

ASC 606 and 610-20 real estate guidance. KPMG answers frequently asked questions on applying the FASB’s revenue and other income recognition standards in the real estate industry.


Applying the revenue standard (ASC 606)

ASU 2017-05

  • Real estate industry
  • Companies that sell real estate and related services to customers and noncustomers

Effective dates

Effective date:

Public business and certain
other entities*

All other entities

Annual periods – Fiscal years beginning after      



Interim periods – In fiscal years beginning after


Dec. 15, 2019

* (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

Responses to common questions on:

  • Analyzing the application of ASC 606 and ASC 610-20
  • Applying the 5-step revenue recognition model
  • Applying the transitional guidance
  • Understanding the ASC 606 interaction with the new leasing standard, ASC 842

This February 2020 edition includes:

  • Updated interpretations based on our experience with companies implementing ASC 606 and ASC 610-20
  • Standard-setting developments involving the interaction with the new leases standard

Report contents

  • Scope
  • Step 1: Identify the contract
  • Step 2: Identify the performance obligations
  • Step 3: Determine the transaction price
  • Step 4: Allocate the transaction price
  • Step 5: Recognize revenue
  • Other implementation matters

Spotlight on contributors

Nick Burgmeier

Nick Burgmeier

Partner, Dept. of Professional Practice, KPMG US

Angie Storm

Angie Storm

Partner, Dept. of Professional Practice, KPMG US

Kevin Manson

Kevin Manson

Senior Manager, Dept. of Professional Practice, KPMG US



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