Handbooks | March 2020
 

Handbook: Leases

Latest edition: 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, ASU 2019-10, ASU 2020-02, ASU 2020-05)

  • All companies with leases in the scope of ASC 842

Relevant dates

Effective date Public business entities and certain other entities* Public NFPs** All other entities

Annual periods – Fiscal years beginning after      

December 15, 2018

December 15, 2019

December 15, 2021

Interim periods – In fiscal years beginning after

December 15, 2018

December 15, 2019

December 15, 2022

Early adoption allowed?

N/A

Yes

Yes

* (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 (“Public NFPs”); and (3) employee benefit plans that file financial statements with the SEC.

** That had not issued GAAP-compliant financial statements reflecting the adoption of ASC 842 before June 3, 2020.

 

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 or asset acquisition
  • Disclosures, effective date and transition


Spotlight on contributors

Kimber Bascom

Kimber Bascom

Partner, Dept. of Professional Practice, KPMG US

Scott Muir

Scott Muir

Partner, Dept. of Professional Practice, KPMG US

 

 

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