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. |
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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
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