As the end of year approaches, we want to remind organizations of two new accounting standard updates that are effective for calendar year 2022.
Leases (Topic 842) – ASU 2016-02
It’s hard to believe it’s been over six years since the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases. Due to the postponement of the original effective date, you may have pushed this standard to the back of your mind. If your organization did not choose to implement this standard early, the time has finally come. The new lease standards are effective for calendar year 2022.
Since the initial release of FASB ASU 2016-02, additional lease accounting updates and practical expedients have been issued through the following ASUs:
- 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842
- 2018-10, Codification Improvements to Topic 842, Leases
- 2018-11, Leases (Topic 842): Targeted Improvements
- 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors
- 2019-01, Leases (Topic 842): Codification Improvements
- 2021-05, Leases (Topic 842): Lessors— Certain Leases with Variable Lease Payments
- 2021-09, Leases (Topic 842): Discount Rate for Lessees That Are Not Public Business Entities
Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets – ASU 2020-07
ASU 2020-07 is applicable to nonprofit entities. Click here to read our original blog post titled “New Presentation and Disclosure Requirements for Gift-In-Kind”, which provides a summary of the new required disclosures and presentation changes.
