FASB to Propose Delaying Effective Date of Leasing and Other New Standards for Nonpublic Companies

The Journal of Accountancy reported today that FASB at its meeting asked the staff to prepare exposure drafts to push back effective dates for private companies of certain upcoming standards. The story is at:

https://www.journalofaccountancy.com/news/2019/jul/fasb-proposal-delay-for-major-standards-201921627.html?utm_source=mnl:alerts&utm_medium=email&utm_campaign=17Jul2019&utm_content=button

The delays generally are for one year from when the standards were proposed to be effective. Specifically the Journal reports:

• Lease Accounting - move the effective date back to Jan. 1, 2021 for private companies (other entities with a 2019 date are not affected)

• Accounting for Credit Losses - move the effective date back to Jan. 1, 2023 for smaller reporting companies (as defined by the SEC), private companies and other non-SEC filers

• Derivatives and Hedging - move the effective date to Jan. 1, 2021

• Long-duration insurance contracts - effective dates of Jan. 1, 2022 for public companies and Jan 1, 2024 for all other entities

The first three will be covered by one exposure draft the staff was told to put priority on, after which they would move on the second. There is to be a 30 day comment period.