Lease Accounting: Simplifying the discount rate debacle
Discount rates need to be captured when implementing the new lease accounting standard. The guidance for non-public companies is more lenient than that for public companies but requires significant consideration as the date approaches.
The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2018-11 Leases – Targeted Improvements (“ASU 2018-11”). The most significant impact is relief in the comparative reporting requirements for initial adoption.