FASB Issues Proposal to Delay Effective Dates to Provide Relief for Certain Entities
The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update that would grant private companies and certain not-for-profit organizations additional time to implement FASB standards on leases, current expected credit losses, and hedging. Public comment ends September 16, 2019.
In regards to the lease standard (ASU 2016-02), this new proposal would provide private companies and not-for-profit organizations that are not conduit bond obligors a one year delay by changing the effective date to fiscal years beginning after December 15, 2020. Early application would continue to be allowed.
However, for public business entities (PBE) and not-for-profit conduit bond obligors the FASB Board retained the current effective date because the lease standard is already effective for those entities.
This is a general summary of the proposed accounting guidance. Please refer to FASB Proposed Accounting Standards Update Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)for additional information.
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