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 2018-20, ASU 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 in fiscal years beginning after |
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; 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 FASB activities, 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 dates and transition
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