New Standards Effective Dates Delayed
Coupled with the recent implementation of a highly challenging revenue recognition standard, the Financial Accounting Standards Board (FASB) numerous new rules have created significant difficulties, especially for private companies whose financial reporting staff have limited capacity and resources. In response to concerns from overwhelmed financial statement preparers, the (FASB) has unanimously voted to delay effective dates for some updated standards. The delay will allow for preparers with limited resources to learn from large public companies’ implementation that already have the advantage of more staffing and resources. While early-adoption options for the standards will remain unchanged, effective dates for private companies will be updated and changed to:
- Lease accounting standard (ASU 2016-02) effective date – fiscal years beginning after Dec. 15, 2020
- Credit loss standard (ASU 2018-19) effective date – fiscal years beginning after Dec. 15, 2022
- Hedge accounting standard (ASU 2017-12) effective date- fiscal years beginning after Dec. 15, 2020
If you feel your business is or may be affected by any of these upcoming standard changes, give us a call. We are more than willing to help you assess any potential consequences and develop a transition plan.