Novogradac Provides Resources to Assist with Changes in Accounting Lease Standards
Novogradac has resources available for private companies and nonprofits affected by Accounting Standards Codification (ASC) 842, which changed lease accounting standards. The change–which took effect Jan. 1 for fiscal years beginning after Dec. 15, 2021–affects the way certain contracts are accounted for under generally accepted accounting principles, particularly entities that are lessees. Rather than disclosing operating leases in notes to financial statements, but not on balance sheets, the new guidance requires lessees to record a right-of-use asset for the leased asset and a corresponding lease liability equal to the financial obligation over the lease term, as well as new disclosure requirements.
A new Notes from Novogradac blog post provides more insight into the changes and a Tax Credit Tuesday podcast on the subject also is available. Novogradac’s Tax and Audit Services team is available to assist with the transition.