In this section, we provide brief updates from the previous quarter on regulatory developments in auditing and accounting that may impact Japanese companies in the United States. Further discussion of the issues can be found in KPMG's Department of Professional Practice's Defining Issues.
Change to ASC 842 ends Lessor Day 1 losses from variable lease payments
July 19, 2021
Lessors to classify leases with variable payments as operating if another classification would trigger a Day 1 loss.
FASB issues ASU 071921 (PDF)
FASB proposes ASU on risk-free discount rate expedient
June 16, 2021
FASB proposes to make the expedient electable by class of underlying asset and clarify its interplay with the implicit rate.
Private Entities 061621 (PDF)
For more information, please contact:
Michael Maekawa | +1 213-955-8331 | tmaekawa@kpmg.com