A guide to lessee accounting under ASC 842 has been updated to incorporate guidance from the following Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB):
- ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (see Section 7.2.5.5 of the guide)
- ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities (see Section 10.1 of the guide)
- ASU 2021-09, Leases (Topic 842): Discount Rate for Lessees That Are Not Public Business Entities (see Section 5.2 of the guide)
The guide has also been updated to reflect the ASC 842 guidance in the FASB staff Q&A, Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic (see Section 7.2.5.6), and for certain practice issues related to the application of ASC 842.
