Handbooks | February 2021

 

Insight

Real estate revenue guide

Latest edition: Our Q&As on the FASB’s revenue and other income recognition standards in the real estate industry.

Nick Burgmeier

Nick Burgmeier

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5455

Angie Storm

Angie Storm

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5488

Richard Binderup

Richard Binderup

Senior Manager, Dept. of Professional Practice, KPMG US

+1 713-319-2832

KPMG answers frequently asked questions on applying ASC 606 and ASC 610-20 in the real estate industry – including updated interpretations based on our experience with companies implementing the standards.

Relevant dates

Effective date

Public entities and certain other entities*

All other entities**

Annual periods – Fiscal years beginning after                                                           

Effective

Dec. 15, 2019

Interim periods – In fiscal years beginning after

Effective

Dec. 15, 2020

* (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.

** ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, deferred the effective date for those specific other entities by one year if Topic 606 has not been adopted as of June 3, 2020. The effective date for annual reporting is for the period beginning after December 15, 2019 and interim reporting periods with annual reporting periods beginning after December 15, 2020.

 

Key impacts

Responses to common questions on:

  • Analyzing the application of ASC 606 and ASC 610-20
  • Applying the 5-step revenue recognition model
  • Applying the transitional guidance
  • Understanding the ASC 606 interaction with the new leasing standard, ASC 842

Report contents:

  • Scope
  • Step 1: Identify the contract
  • Step 2: Identify the performance obligations
  • Step 3: Determine the transaction price
  • Step 4: Allocate the transaction price
  • Step 5: Recognize revenue
  • Other implementation matters

Subscribe to our newsletter

Receive timely updates on accounting and financial reporting topics from KPMG.

Receive timely updates on accounting and financial reporting topics from KPMG.

ARO

Use our Accounting Research Online for financial reporting resources.

Use our Accounting Research Online for financial reporting resources.