Issues In-Depth   |   June 2018

Abandonment and subleasing under ASC 842

KPMG supplements our Handbook, Leases to address a lessee’s accounting when ceasing use of an underlying asset (or portion thereof) through abandonment or sublease. The guidance includes Q&As and examples, addressing some of the complexities of applying ASC 360 and ASC 842 in these scenarios..


Applying the new leases standard

  • Lessees applying ASC 842

Relevant dates

  • Relevant upon adoption of ASC 842

Key impacts

The Q&As and examples deal with the following scenarios:

  • What constitutes an ‘abandonment’ of an ROU asset
  • When a lessee should reassess its ASC 360 asset grouping in an abandonment or sublease scenario
  • How to account for full and partial abandonments of an ROU asset
  • How to account for the sublease of a portion of an underlying asset

Report Contents

  • The concepts
  • Abandonment of the entire ROU asset
  • Abandonment of a portion of the ROU asset
  • Sublease of a portion of the underlying asset

Related Content

Spotlight on contributors

Scott Muir
Partner, KPMG’s Department of Professional Practice

Julie Santoro
Principal, KPMG’s Department of Professional Practice

Ryan Withers
Senior Manager, KPMG’s Department of Professional Practice



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