Handbooks   |   August 2019
 

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 continuing developments in practice.

Applicability

ASC Topic 842 (ASU 2016-02, ASU 2018-01, ASU 2018-10, ASU 2018-11, ASU 2018-20ASU 2019-01)

  • All companies with leases in the scope of ASC 842

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 entities1, 2

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?

Immediately

Immediately

 

(a) public business entities; (b) 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 (c) employee benefit plans that file financial statements with the SEC.

2 Because many public business and certain other entities adopted ASU 2016-02 and its related amendments before ASU 2019-01 was issued, ASU 2019-01 is effective in annual and interim periods in fiscal years beginning after December 15, 2019. However, early adoption is permitted.


Key impacts

  • Updated for recent practice developments and evolving interpretations
  • Q&As that answer the questions being encountered in practice
  • Examples and observations to illustrate and explain key concepts
  • Changes from legacy US GAAP

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

Related content

Spotlight on contributors

Kimber Bascom

Kimber Bascom

Partner, DPP, KPMG (US)

+1 212-909-5664
Scott Muir

Scott Muir

Partner, DPP , KPMG (US)

+1 212-909-5073

 

 

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