Add to favorites
ASU 2021-09: Discount Rate for Lessees That Are Not Public Business Entities

On November 11, the FASB issued ASU 2021-09, Leases (Topic 842): Discount Rate for Lessees That Are Not Public Business Entities that allows lessees that are not public business entities—including private companies, not-for-profit organizations, and employee benefit plans—to use a risk-free rate as the discount rate to classify and measure leases by class of underlying asset. Currently, ASC 842 allows lessees to elect the risk-free rate for all leases. The amendments also require that a lessee use the rate implicit in the lease for any individual lease when it is readily determinable, regardless of whether it has made the risk-free rate election.

For entities that have not yet adopted ASC 842, the amendments are effective upon an entity’s adoption of ASC 842. For entities that have adopted ASC 842, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Earlier application is permitted as of the beginning of the fiscal year of adoption.
Expand

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

Your session has expired

Please use the button below to sign in again.
If this problem persists please contact support.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide