Handbook | February 2022
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. Updated for ASC 842, recent practice issues and other developments.
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, ASU 2021-05).
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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