Private companies and nonprofits have leeway to choose the discount rate they use in calculating the value of their operating leases under new lease accounting standards, the Financial Accounting Standards Board (FASB) decided this week.
The Financial Accounting Standards Board (FASB) today issued a proposed Accounting Standards Update (ASU) that would improve financial reporting for investors and other financial statement users by increasing comparability of financial information across reporting entities that have investments in equity securities measured at fair value that are subject to contractual restrictions preventing the sale of those securities. Stakeholders are encouraged to review and provide comment on the proposed ASU by November 14, 2021. Learn more here.
The Financial Accounting Standards Board approved a new rule for companies leasing out assets in an effort to eliminate a sometimes sizable accounting loss at the start of certain contracts. The new standard, approved Wednesday by the U.S. accounting standard-setter, serves as an update to a rule that went into effect for public companies in early 2019 and requires businesses to put operating leases on their balance sheets instead of in footnote disclosures. Learn more here.
FASB seeks investor input through its Investor Advisory Committee as well as through investors who are members of other advisory bodies such as the Financial Accounting Standards Advisory Council, the Not-for-Profit Advisory Council, the Private Company Council, and the Small Business Advisory Committee. Learn more here.