Handbooks   |   August 2018
 

Handbook: Leases

In this handbook, KPMG explains the new leasing standard (ASC 842) in detail. We provide detailed Q&As, examples and observations, and comparisons to legacy US GAAP, updated for recent amendments to the standard and continuing developments in practice. 

Applicability

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

  • All companies in the scope of ASC 842

Relevant dates

Mandatory effective dates and early adoption provisions:



Effective date:

 

 

Annual periods –
Fiscal years beginning after


Public business entities

and certain not-for-profit entities:

December 15, 2018
 


All other entities:

 

 

December 15, 2019
 

Interim periods –In fiscal years beginning after

Dec. 15, 2018

Dec. 15, 2019

 

Early adoption allowed?

Immediately

Immediately

* (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

  • Q&As that answer the questions we are encountering in practice
  • Examples and observations to explain key concepts
  • Changes from legacy US GAAP
  • Updated for recent amendments to ASC 842, practice developments and evolving interpretations

Webcast

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

Spotlight on contributors

Kimber Bascom

Kimber Bascom

Partner, DPP, KPMG (US)

+1 212-909-5664
Halie Creps

Halie Creps

Partner, Audit, KPMG (US)

+1 (212) 954 3622
Scott Muir

Scott Muir

Partner, DPP, KPMG (US)

+1 212-909-5073

 

 

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