Moving to hybrid working

Is your leased office space impaired?

27 July 2021 (updated 24 March 2022)

What’s the issue?

The COVID-19 pandemic has changed working practices, driving an increase in home- and hybrid-working models. Some tenants are looking to either exit or renegotiate their real estate leases.

Deciding to vacate or sub-let office space potentially indicates impairment, so companies need to assess the potential impacts for their financial reporting now.

Getting into more detail

Changes in the expected use of office space could have significant accounting consequences. For example, the right-of-use (ROU) asset in a lease arrangement could be impaired or there could be a change in its estimated useful life.

Patouche Van Staaij

Executive Director, Audit

KPMG in Belgium

Testing leased office space for impairment

Moving to hybrid working

What’s the issue?

Getting into more detail

Patouche Van Staaij

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