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FASB ASU 2021-09, Discount Rate for Lessees That Are Not Public Business Entities

Topic 842 amendment permitting eligible lessees to elect a risk free rate by class of underlying asset.

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Publisher
Financial Accounting Foundation
Standing
Primary authority
Version
ASU 2021-09
Relevant parts
Topic 842 nonpublic-entity discount-rate practical expedient
Currency
current · checked Aug 8, 2026

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The practical expedient changes a permitted policy choice, not the arithmetic of discounting. A schedule should disclose who supplied the rate, why the entity is eligible, which asset class carries the election, and whether the implicit rate was readily determinable.