Q&A | January 2019

Q&A Revenue: Real estate

KPMG provides ASC 606 real estate guidance. KPMG answers frequently asked questions on applying the revenue recognition standard in the real estate industry.


Applying the new revenue standard

ASU 2017-05

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

Effective dates

Mandatory effective dates and early adoption provisions:

Effective date:

Public business and certain
other entities*

All other entities

Annual periods – Fiscal years beginning after

December 15, 2017

December 15, 2018

Interim periods – In fiscal years beginning after

December 15, 2017

December 15, 2019

Early adoption allowed?

An entity is required to apply the amendments in ASC 610-20 at the same time that it applies ASC 606. However, the earliest an entity may apply ASC 610-20 or ASC 606 is for annual and interim periods beginning after December 15, 2016.

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 January 2019 edition includes updated interpretations based on our experience with companies implementing ASC 606 and ASC 610-20, and standard-setting developments involving interaction with the new leases standard.


  • Listen to KPMG's webcast 'New revenue and leases standards for real estate companies':  here

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

Related content

Spotlight on contributors

Nick Burgmeier

Nick Burgmeier

Partner, DPP, KPMG US

+1 212-909-5455
Angie Storm

Angie Storm

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

+1 212-909-5488



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