Q&A | June 2020
In this guide, KPMG answers frequently asked questions on applying ASC 842 for real estate lessors, updated for new and revised interpretations and recent amendments to ASC 842.
Applicability
Real estate lessors in scope of ASC 842 (ASU 2016-02, ASU 2018-01, ASU 2018-10, ASU 2018-11, ASU 2018-20, ASU 2019-01, ASU 2020-02, ASU 2020-05).
Relevant dates
Effective date |
Public business entities* |
All other entities |
Annual periods – Fiscal years beginning after |
December 15, 2018 |
December 15, 2021 |
Interim periods – In fiscal years beginning after |
December 15, 2018 |
December 15, 2022 |
Early adoption allowed? |
Yes |
Yes |
* This includes (1) ‘public’ not‑for‑profit entities (i.e. those 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), with the exception of those entities that have not yet issued financial statements under Topic 842 as described in the following paragraph, and (2) employee benefit plans that file or furnish financial statements with or to the SEC. Public not‑for‑profit entities that have not issued (or made available for issuance) financial statements reflecting the adoption of Topic 842 as of June 3, 2020 must adopt Topic 842 for annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted. |
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Report contents:
- Scope and definition of a lease
- Separating components of a contract
- Lessor accounting
- Other considerations
- Transition
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