This Hot Topic compiles questions on select ASC 842 implementation issues from the KPMG Leases handbook into one concise document to assist entities in their initial application of ASC 842.
Entities that have not yet adopted or issued financial statements under ASC 842 (leases)
Effective date | Public entities and certain other entities* | Public NFPs** | All other entities |
Annual periods – Fiscal years beginning after | Fully Adopted |
Fully Adopted |
Dec 15, 2021 |
Interim periods – In fiscal years beginning after |
Fully Adopted |
Fully Adopted |
Dec 15, 2022 |
Early adoption allowed in fiscal years beginning after | N/A | N/A | Yes |
* Includes (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 (‘Public NFPs’); 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. |
During public companies’ adoption of ASC 842 in 2019 we observed companies experience challenges with:
Due to economic events and conditions of the last few years, these issues may be even more acute for private entities adopting and reporting under ASC 842 for the first time.
This Hot Topic compiles specific questions on these topics from the Leases handbook into one concise document to assist entities in their initial application of ASC 842.
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Access our accounting research website for additional resources for your financial reporting needs.
Access our accounting research website for additional resources for your financial reporting needs.