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Lease Accounting — Planning on Going Public? What You Need to Know About the Potential ASC 842 Implications (August 16, 2022)

Accounting Spotlight
August 16, 2022
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Lease Accounting — Planning on Going Public? What You Need to Know About the Potential ASC 842 Implications

Footnotes

1
For titles of FASB Accounting Standards Codification (ASC) references, see Deloitte’s “Titles of Topics and Subtopics in the FASB Accounting Standards Codification.”
2
Public companies include PBEs and certain NFP entities and employee benefit plans as described in ASC 842-10-65-1(a).
3
The deferral in FASB Accounting Standards Update (ASU) No. 2020-05, Revenue From Contracts With Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, applies to public NFPs that have not issued financial statements or made financial statements available for issuance as of June 3, 2020. Public NFPs that have issued financial statements or have made financial statements available for issuance before that date must comply with the effective dates prescribed for public companies above.
4
Jumpstart Our Business Startups.
5
Fixing America’s Surface Transportation.
6
For more information about EGCs, see the SEC’s Web site.
7
Although ASC 842 became effective for fiscal years beginning after December 15, 2021, and must be adopted for annual periods after the adoption date, nonpublic companies are not required to apply ASC 842 on a quarterly basis until quarters in fiscal years beginning after December 15, 2022. Because delayed adoption is permitted on a quarterly reporting basis under U.S. GAAP, the same principle holds true for EGCs that use the private-company adoption dates.
8
FASB Accounting Standards Update No. 2016-02, Leases (Topic 842).