FASB proposed changes Wednesday, June 16, to discount rate guidance for lessees that are nonpublic business entities, with an objective of reducing the costs of implementing the board’s new lease accounting guidance.
Lessees that could adopt the proposed guidance include private companies, not-for-profits and employee benefit plans. The proposal permits lessees that are not public business entities to elect to use a risk-free rate as the discount rate for leases by class of underlying asset, rather than at the entity-wide level.
FASB is accepting feedback on the proposal through July 16. Learn more.