ASC 842 for lessors – US GAAP KPMG Summary

An executive overview of the lease accounting standard from a lessor’s perspective.

Key impacts:

  • Lessor accounting is not fundamentally changed, but important differences from ASC 840 exist.
  • Key aspects of the lessor accounting guidance have been aligned with the guidance in ASC 606 (revenue recognition).
  • Your customers will now be required to recognize all leases, including operating leases, with terms greater than 12 months on their balance sheets.
  • Accounting systems, processes and control changes will likely be necessary to comply with the changes to lessor accounting and the increased lessor disclosure requirements.
  • Lessors can choose between two transition methods, with additional practical expedients available.

Download report from KPMG Financial Reporting View

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