ASC 842 significantly changed lease accounting for not-for-profit organizations, requiring most leases to be recognized on the statement of financial position and introducing new considerations related to lease identification, measurement, classification, and disclosure. This comprehensive guide provides nonprofit-specific guidance on key areas of the standard, including embedded leases, donated use of facilities, below-market lease arrangements, and significant management judgments.
The guide also includes illustrative examples, journal entries, disclosure requirements, sample footnotes, and financial statement presentation examples to help preparers and