Preface

We are pleased to present the 2023 edition of Leases (the “Roadmap”). Since the issuance of ASU 2016-021 (codified in ASC 842) on February 25, 2016, the FASB has continued to discuss and make updates to ASC 842 on the basis of implementation questions raised, challenges identified by stakeholders, and the Board’s postimplementation review process.2

The body of the Roadmap combines the requirements in ASC 842 with Deloitte’s interpretations and examples in a comprehensive, reader-friendly format. In addition, the Roadmap highlights (1) the requirements of ASC 842 that significantly differ from those in ASC 840 and IFRS 16 and (2) recent standard-setting developments (through September 15, 2023). In this Roadmap, it is assumed that ASU 2018-20 has been adopted or is being adopted in connection with an entity’s adoption of ASC 842.

We hope that this publication will enable entities to deal with some of the more challenging aspects of ASC 842. This publication has been developed for readers who have been following every development of the standard as well as for those who are working through the new guidance for the first time. That is, it may function as a quick resource guide for those who have a specific question and are looking for a clear answer, or it may serve as an all-encompassing guide for those who are still building up their knowledge base related to the new leasing standard.

Although the mandatory effective date for public companies has passed, challenging questions remain, and we expect new implementation questions to continue emerging. Accordingly, we will continue to develop guidance to help stakeholders with implementation.

Note that in this year's update of the Roadmap, we have continued our process of converting text that was previously in Q&A format into regular text format. Although not all Q&As are being converted this year, we expect to convert the remaining ones as part of subsequent updates. See Appendix H for a mapping of the Q&As (and example renumbering as applicable) that have been converted thus far to their respective new sections for 2023.

Further, the updated edition of this Roadmap includes some new interpretations and certain modifications to previously expressed views to reflect our latest thinking as well as input from standard setters and regulators. Appendix I highlights all new content as well as any substantive revisions to previous content.

We encourage you to use this Roadmap as a guide throughout your application of ASC 842 and to contact us with any questions or suggestions for future improvements. However, the Roadmap is not a substitute for consulting with Deloitte professionals on complex accounting questions and transactions.

We hope that you find this Roadmap helpful in achieving a successful adoption of the new guidance as well as in navigating the ongoing accounting requirements for leases after adoption.