Handbook: Leases
Handbooks | August 2025
Latest edition: Our in-depth guide to ASC 842 – with Q&As, interpretive guidance and examples.
In this handbook, we explain the leases standard in detail. We provide detailed Q&As, examples and observations.
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Applicability
- All companies with leases in the scope of ASC 842
Relevant dates
- Effective immediately
Key impacts
Almost all entities are lessees; therefore, ASC 842 affects almost all organizations, public and private, across all industries. The assets they lease encompass a wide range, including real estate, equipment, fleet and automobiles, among many others. They, along with lessors, must navigate new transaction types and economic events as they arise.
Successfully applying ASC 842 can present challenges and complexities. It frequently requires careful judgment and estimation. It also requires an understanding of how changes in business practices and contractual arrangements, as well as economic events, affect an entity’s lease accounting. As a result of these changes, economic events and new transaction types, entities may need to apply aspects of the guidance they have not previously utilized or applied.
Organized in a Q&A format, this handbook is intended to help you focus effectively and efficiently on the accounting requirements of ASC 842 and answers those key questions that continue to arise in practice about their application.
Report contents
- Scope and definition of a lease
- Identifying and separating components of a contract
- Concepts and definitions applicable to lessees and lessors
- Lessee accounting model
- Lessor accounting model
- Subleases
- Sale-leaseback accounting
- Income tax effects
- Leases acquired in a business combination or asset acquisition
- Disclosures, effective dates and transition
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Explore more
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: Hot Topics
These focused Hot Topics are intended for those with an interest in the detailed application of ASC 842.
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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