Deloitte's Roadmap: Leases

Leases

This Roadmap combines the requirements of the FASB’s leasing standard, ASU 2016-02 (codified as ASC 842), with Deloitte’s interpretations and examples in a comprehensive, reader-friendly format. 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.

You must log in to view this content and have a subscription package that includes this content.

Required subscriptions

US GAAP

View all / combine content

Preface On the Radar Contacts Chapter 1 — Overview Chapter 2 — Scope and Scope Exceptions Chapter 3 — Identifying a Lease Chapter 4 — Components of a Contract Chapter 5 — Commencement Date, Lease Term, and Purchase Options Chapter 6 — Lease Payments Chapter 7 — Discount Rates Chapter 8 — Lessee Accounting Chapter 9 — Lessor Accounting Chapter 10 — Sale-and-Leaseback Transactions Chapter 11 — Control of the Underlying Asset Before Commencement Chapter 12 — Sublease Accounting Chapter 13 — Other Key Provisions Chapter 14 — Presentation Chapter 15 — Disclosure Chapter 16 — Effective Date and Transition Chapter 17 — Stakeholder Activities Chapter 18 — Reporting Considerations for SEC Registrants Appendix A — Glossary of Terms in ASC 842-10-20, ASC 842-20-20, ASC 842-30-20, ASC 842-40-20, and ASC 842-50-20 Appendix B — Differences Between U.S. GAAP and IFRS Accounting Standards Appendix C — Differences Between ASC 840 and ASC 842 Appendix D — Implementation Activities Appendix E — Internal Control Over Financial Reporting Appendix F — Titles of Standards and Other Literature Appendix G — Abbreviations Appendix H — Q&A Conversion and Example Mapping for 2022 Update of Leasing Roadmap Appendix I — Roadmap Updates for 2022

Since the issuance of ASU 2016-02 (codified in ASC 842) on February 25, 2016, the FASB has focused on implementation efforts related to the adoption of ASU 2016-02. Over the past five years, the FASB has held multiple meetings to discuss implementation questions raised and challenges identified by stakeholders from several industries. In response to the feedback received, the FASB has issued several final ASUs that amend certain aspects of ASC 842 and may propose ASUs to further clarify or amend its guidance.

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 November 15, 2022). 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.

Note that in this year's update of the Roadmap, we have begun the 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 2022.

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.

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.

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.