Defining Issues | July 2021
Lessors will classify leases with variable payments as operating if another classification would trigger a Day 1 loss.
Effective date | Public entities | All other entities |
---|---|---|
Annual periods – Fiscal years beginning after | December 15, 2021 | December 15, 2021 |
Interim periods – In fiscal years beginning after | December 15, 2021 | December 15, 2022 |
Early adoption allowed in fiscal years beginning after | Yes, but not before adopting ASC 842 |
Lessors will classify a lease with variable payments that do not depend on an index or rate as an operating lease if:
FASB finalizes lessor ASC 842 amendment
Download PDFHandbook: Leases
Latest edition: Our in-depth guide to ASC 842 – with Q&As, interpretive guidance and examples.
Leases
Our reporting, guidance and publications relevant to the FASB's new leases standard for lessees and lessors for all industries. KPMG specialists provide an in-depth look at ASC 842 implementation
Leases: Executive summaries
To help you understand the impact of the new leases standard, ASC 842, read KPMG's overviews of the leases guidance.
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