Top Lease Accounting Guides from Deloitte, PwC, KPMG

The new lease standard is coming and preparation is critical for a smooth implementation. This is easier said than done and the experts agree: this new standard is complicated.

Due to its complexity, much has already been written about the lease standard changes. You might be wondering how to discern which information can be described as reliable, thorough, and authoritative. To help you identify the best resources, we’ve compiled the following list of documents, guides, and examples.

Resource #1: ASC 842

You can’t get more authoritative than Update 2016-02 itself. The online resource has been divided into three sections:

• ​Section A: The 185-page Accounting Standards Update. Recommended for developing a baseline of knowledge about the new lease standard.
• ​Section B: A 333-page record of the amendments made to the FASB Accounting Standards Codification. Useful for those who want to reconcile the old and new lease standards.
• ​Section C: A 485-page document containing background information and the basis for conclusions about ASC 842.

Resource #1A: FASB Overview Material

FASB provides official summaries, press releases, videos, and webinars related to the new lease standard.

Resource #2: IFRS 16

If you need to comply with international accounting standards, access the 90-page IFRS 16 document, which differs from ASC 842. The most striking difference is that IFRS 16 treats all leases as finance leases—there is no concept of an operating lease. The International Accounting Standards Board (IASB) also provides a 57-page document with illustrative examples on applying the new standard. Note: There is a cost to access these documents.

Resource #3: KPMG

KPMG developed an in-depth analysis of the new lease standard. The Handbook on Leases contains many examples and comparisons between the current ASC 840 standard and future ASC 842 standard, using a Q&A format.

• ​KPMG Resource #2: KPMG also offers a variety of resources on detailed lease topics, including webinars and in-person sessions.

Resource #4: PwC

PwC’s guide, “Leases,” provides examples and comparisons from a different perspective and covers topics that others don't, such as the treatment for sales tax.

Resource #5: Deloitte

Deloitte’s Roadmap Series includes a roadmap for leases.

Deloitte also published a 41-page Heads Up document in 2016, which is a summary document with tangible examples of how different aspects of the lease standard should be applied.

Additionally, Deloitte published a 29-page document on IFRS 16 entitled Thinking Allowed, which helps identify and work through decision points relevant for businesses.

Resource #6: E&Y

E&Y compiled an ASC 842 analysis and continues to update details as the lease standard evolves.

Resource #7: Moss Adams

This summary document includes guidance on what companies need to do to prepare for the standard, including information gathering and policy elections to consider.

Resource #8: RSM

RSM’s document features a step-by-step Decision Point analysis in Section 3 to help determine if a contract is considered a lease.

Resource #9: BDO

BDO offers a webcast that provides a self-study course for CPE credits, as well as access to their podcast and handout materials.

Resource #10: Grant Thornton

Grant Thornton provides a summary of potential tax implications of the new lease standard, including effects on deferred taxes and possible changes to sales, state, and foreign tax calculations.

These resources are designed to help understand the implications of the new lease standard and support a smooth transition.