Handbook | February 2021

 

Insight

Real estate lessor guide

Latest edition: Includes new and updated interpretations for recent practice issues and other developments.

Angie Storm

Angie Storm

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5488

Scott Muir

Scott Muir

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5073

Landon Westerlund

Landon Westerlund

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5553

Latest edition: Real estate focused Q&As based on our experience with companies implementing ASC 842, and discussions with industry and preparer groups, the FASB and the SEC staff.

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.

 

Report contents:

  • Scope and definition of a lease
  • Separating components of a contract
  • Lessor accounting
  • Other considerations
  • Transition

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