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Preparing Your Nonprofit for an Audit Under ASC 842

Preparing Your Nonprofit for an Audit Under ASC 842

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February 2023

A set of accounting standards for leases is now mandatory for most business entities in the U.S., including not-for-profit organizations (NFPs). These standards, known as ASC 842, began to take effect in late 2018 for publicly-traded companies. The following offers an overview of ASC 842 and guidance on how NFPs can prepare for audits now that the standard is in place.

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