Ron Soluri Jr., CPA
In response to the COVID-19 pandemic and the difficulties organizations are experiencing, the FASB voted to defer implementation dates providing organizations additional time to comply with the revenue recognition and lease standards. See below for details on each standard.
In the original proposal, the FASB intended the deferral to be applicable to Franchise or business, however FASB extended the deferral to all private companies and nonprofits that have not yet issued their financial statements. Public companies have been using the revenue recognition standard since 2018.
The effective date will now be for annual reporting periods beginning after Dec. 15, 2019, and interim reporting periods within annual reporting periods beginning after Dec. 15, 2020. Early adoption is permitted.
For the lease standard for private companies and private not-for-profit the effective date will now be for fiscal years starting after Dec. 15, 2021, and interim periods within fiscal years beginning after Dec. 15, 2022. For public nonprofits, the effective date for the leasing rules will be pushed to fiscal years starting after Dec. 15, 2019. Early adoption is permitted.
Public companies have been using the Lease standard since 2019.
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