FASB has issued an exposure draft regarding the use of the discount rate alternative offered to nonpublic entities. After receiving feedback that the risk-free rate was not as widely adopted due to relatively low interest rates, FASB is now proposing permitting the use by class of assets as opposed to the current requirement at the entity level. Comments are due July 16, 2021.
Learn more in this video review.
Would this make the new rate more appetizing to nonpublic entities?