Implementation of Revenue Recognition and Lease Accounting Standards for Private Companies and Nonprofits Delayed

The Financial Accounting Standards Board issued an update that delays the effective dates for revenue recognition and lease accounting standards by one year, due to the Coronavirus pandemic.

lease accountingPrivate companies and not-for-profits that have not applied the revenue recognition and lease accounting standards can delay the implementation by one year for annual reporting periods beginning after December 15, 2019, and interim reporting periods within annual reporting periods beginning after December 15, 2020.

The update allows private companies and private not-for-profits to apply the new standard for fiscal years beginning after December 15, 2021, and to interim periods within fiscal years beginning after December 15, 2022. Public not-for-profits that have not yet issued, or made available to issue, financial statements reflecting the new lease accounting guidance may apply the standard for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.

This delay in implementation helps alleviate pressure on private companies and not-for-profits during the pandemic.

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