Please join BDO USA, LLP for our next session of the 2020 BDO KNOWLEDGE Nonprofit and Education Webinar Series, Lease Accounting for Nonprofits."
  • Webinars

    BDO webinars bring our community together in an online setting
    to connect with each other and share insights into the topics and trends.

Lease Accounting for Nonprofits

February 27, 2020
1:00 PM to 2:15 PM EST

Register
Gabe Foster
(704) 887-4142
Email
Technical Support:
844-580-6963

Technical Support
(BDO Employees):
888-236-9111
6_GEN_11100-jpg.jpg
  • Summary
  • Key Takeaways
  • Recording and Materials
Please join BDO USA, LLP for our next session of the 2020 BDO KNOWLEDGE Nonprofit and Education Webinar Series, "Lease Accounting for Nonprofits."
 
The Financial Accounting Standards Board’s new lease accounting standard alters the accounting rules for how nonprofit organizations account for leases, and will have a huge impact on many nonprofit financial statements. We discuss this new accounting standard, which went into effect for nonprofits on January 1, 2020. Nonprofits that are conduit debt obligors began following this new standard as of January 1, 2019.
The impact of the new lease standard for nonprofits is as follows:
  • All leases are recognized in the statement of financial position (balance sheet) either as finance or operating, which means that a nonprofit’s balance sheet will grow substantially.
  • The impact of recording the liability related to the leases in the balance sheet can have a significant impact on debt and other financial covenants.
  • Operating leases will still be recognized as a single-lease expense on a straight-line basis.
  • Finance leases retain their interest and depreciation charge.
  • The lease accounting changes outlined in this standard will require a significant overhaul to how lease accounting is handled internally. As a result, many nonprofitss are facing resource allocation challenges in order to become compliant with this accounting standard.
Access the webinar recording 

Note: CPE credit is not available for the recording