FASB ASC 842: Additional flexibility for discount rate selection

On November 11, 2021, the FASB issued ASU 2021-09, Leases (Topic 842): Discount Rate for Lessees that are Not Public Business Entities. The ASU widens an existing policy election for private companies and not-for-profit entities (NFPs) to use a risk-free rate by underlying class of asset. Previously, FASB ASC 842-20-30-3 required the policy election to be applied to all leases. The subtle change may seem minor but will provide significantly more flexibility to selection of a discount rate- a process