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Lease Delay Rejected for Private Companies & NFPs
FASB met on November 10, 2021, to consider a request for additional implementation time for the lease standard (Accounting Standards Codification (ASC) 842) for private companies and nonprofits. The request cited continued COVID-19 disruptions, particularly labor constraints in the labor market as well as the time and resources to comply with critical aspects of the standard such as the discount rate and embedded leases. FASB members rejected this request, citing two previous deadline extensions and recent practical expedients available for nonpublic companies.
Conclusion
The adoption of ASC 842 will be complex and likely will require significant hours to correctly implement. BKD can help educate your team, provide implementation tools, and assist with analysis and documentation. If you would like assistance in complying with the new lease standard, contact your BKD Trusted Advisor™. BKD has prepared a library of BKD Thoughtware® on this issue. Visit our Lease Accounting Resource Center to learn more.
