2021-09-22 OMA Agenda - Board of Trustees

Emerging Financial Reporting Issues

Obesity Medicine Association

ASU 2016-02 - Leases (Topic 842)  All leases greater than 12 months shall be classified as:  Type A (Financing) - if the term of the lease is for a major part of the remaining economic life of the underlying asset (such as leases for equipment, vehicles, etc.)  Type B (Operating) - lease of property (such as land, all/part of a building, etc.)

Statement of Financial Position

Statement of Activities

Statement of Cash Flows

Amortization expense Interest expense

Cash paid for principal and interest payments

Right-of-use asset Lease liability

Financing (Type A)

Single lease expense on a straight-line basis

Right-of-use asset Lease liability

Cash paid for lease payments

Operating (Type B)

 The guidance is effective for the annual reporting period ending December 31, 2022. Early application is permitted.

For Board Of Trustees And Management Use Only

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