Handbook: Leases
Handbooks | June 2023
Latest edition: Our in-depth guide to ASC 842 – with Q&As, interpretive guidance and examples.
In this handbook, we explain the leases standard (ASC 842) in detail. We provide detailed Q&As, examples and observations, as well as comparisons to legacy US GAAP.
Relevant dates
| Effective date | Public business entities and certain other entities* | All other entities |
|---|---|---|
Annual periods – Fiscal years beginning after | In effect | Dec 15, 2021 |
| Interim periods – In fiscal years beginning after | In effect | Dec 15, 2022
|
| Early adoption allowed in fiscal years beginning after | In effect | 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; and (3) employee benefit plans that file financial statements with the SEC. | ||
Key impacts
ASC 842 has affected organizations, public and private, across all industries that use leases for real estate, equipment, fleet and automobiles, among others. And while the lessor accounting requirements are similar to those under the legacy leasing guidance (ASC 840) in most respects, there are more than a few important changes and new disclosure requirements. Meanwhile, the accounting for more complex transactions, such as sale-leasebacks and build-to-suit leasing arrangements, is significantly changed.
Organized in a Q&A format, this handbook is intended to help you focus effectively and efficiently on the accounting requirements of Topic 842, and answers key questions that continue to arise in practice about their application.
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 dates and transition
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Leases
Our reporting, guidance and publications relevant to the FASB's new leases standard for lessees and lessors for all industries. KPMG specialists provide an in-depth look at ASC 842 implementation
Leases: Hot Topics
These focused Hot Topics are intended for those with an interest in the detailed application of ASC 842.
Leases: Executive summaries
To help you understand the impact of the new leases standard, ASC 842, read KPMG's overviews of the leases guidance.
Resource
Private entity lease adoption 2-part webcast
KPMG professionals discuss core lessee accounting requirements and transition accounting for private entities adopting ASC 842 in 2022
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