Addressing covenant requirements under the new lease accounting standards
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Addressing covenant requirements under the new lease accounting standards

1 year ago · 1 min read

SECTION

EXCLUSIVE

Many not-for-profit entities (NFPs) are required to meet financial covenants as conditions of debt arrangements and credit agreements. Financial covenants are legally binding and, if not met, they can trigger default or other legal action.

FASB ASC Topic 842 Leases, requires lessees to recognize assets and liabilities for substantially all leases. Under the new guidance, effective for fiscal years beginning after December 15, 2021 for nonpublic NFPs and for fiscal years beginning after December 15, 2019 for public NFPs,

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