February 2021
In 2016, FASB released Update No. 2016-02 Leases (ASB Topic 842), which significantly changed the way that lessees accounted for operating leases. Prior to the issuance of ASB Topic 842, lessees were not required to include assets and liabilities on their balance sheet. Now, nonpublic entities, including most nonprofit entities, must disclose this information.
The COVID-19 pandemic has had a significant impact on nonprofit organizations and other businesses globally. The changes to the timeline for implementing ASB 842 will help to ease the reporting burden of the lease accounting standards on these organizations as they navigate the fallout of the pandemic.
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